Alimentation Couche-Tard operates a network of convenience stores across North America, Ireland, Scandinavia, Poland, and the Baltics. The last time we discussed Alimentation Couche-Tard (ATD.TO) was in the November 27, 2023 edition of the Daily Stock Report, when shares were at $79.20. At that time, the stock was in the Favored zone of the SIA S&P TSX 60 Index Report, moving higher with a gain of 35% in just over a year and a half. However, ATD.TO has lost its relative strength against other stocks in this matrix report and currently sits in 35th position in the Unfavored zone. Over the past year, shares of ATD.TO are up 7.51% but down 2.77% year-to-date, which represents a significant opportunity loss compared to stocks in the Favored zone, which range from 38.60% (TRI.TO) to 98.74% (K.TO). Turning to the weekly candlestick chart of Alimentation Couche-Tard, we see that the shares have been in a steady uptrend, consistently displaying a pattern of higher highs and higher lows—a sign of a long-term accumulation phase. However, the latest move below the 50-week moving average is somewhat troubling, especially in light of the declining relative strength. For the most part, shares of ATD.TO appear to be in a consolidation phase, with resistance levels marked at $85 (red) and support at $73 (green).
In the attached Point and Figure Chart at a 2% scale, we observe the shares under negative pressure, forming a declining flag pattern with resistance at $82.31, $94.55, and $100. Support is currently at $73.09, with additional support at $67.52 and $58.78 should a material correction occur. Currently, the shares exhibit a bearish tone, with sellers in short-term control. With a SMAX of only 3, ATD.TO shows very little strength against all other asset classes, including bonds, commodities, currencies, and both equal-weight international and domestic equities.
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