Shares of wireless communications company Rogers (RCI.B.TO) have been a quiet little company on the SIA S&P TSX 60 Index Report as it languishes low in the rankings as it has for many years now (currently #59th spot). Looking at the relative strength (RS) position chart, we can see that the shares did attempt to rally up the matrix (circles), only to fall under distribution. Rogers is not alone at the bottom of the matrix; it shares this weakness with the other two major wireless companies, Bell and Telus. From a performance standpoint, RCI.B.TO has returned shareholders -2.34% over the past 5 years and -14.09% YTD, with a dividend yield of 3.82%. By market index comparison, over the same period, the S&P/TSX60 Index returned +13.46% and +7.77% YTD. Next, we turn to a long-term candlestick chart dating back to 2010, with each bar representing 1 month of trading, to establish the major support and resistance levels. On this chart, we can see the solid move from $18 in 2010 to the rally end at $60, which marks the top of the current channel. Shares have been locked in a sideways back-and-forth pattern, producing little return for long-term shareholders. There is decent support at current levels dating back to 2021 and further support at $45 dating back to 2017; a drop below these levels would be concerning indeed. Rogers' stock price also shows a wedge formation since 2022 that may take time to play out but will no doubt finish with a break one way or the other. Given the lack of RS, strong overhead resistance, and lack of sector leadership, Rogers' stock price would be vulnerable, especially should the broad market enter a material correction. SIA Charts’ relative strength rankings help investors identify opportunities in stocks that are outperforming their peers or index benchmarks on a relative basis. Underperformance often reflects deteriorating investor expectations for a company or sector’s growth.
We have added the S&P/TSX60 Relative Strength overlay on the point and figure chart scale at 2%, which gives us its position in the matrix over time. The nicely trending chart might mask the clear underperformance under the hood, but the red and yellow colors show us this relative underperformance very well. Support on the chart is at $48.06, with further support at $44.40 and $40.21, and the long-term trend line is $37.89. Resistance is initially at the 3-box reversal of $54.12, with longer-term and top-of-channel wedge resistance at $64.68-$71.41. With a SMAX score of 0 out of 10 (a near-term indicator comparing an asset against various asset classes), Rogers is showing zero short-term strength across all other asset classes.
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