Last year, on June 20, 2024, shares of AtkinsRealis Group Inc. (ATRL.TO) were highlighted in the Daily Stock Report after being detected as a relative strength outperformer using the SIA Platform. At that time, shares were under steady accumulation and were positioned at the top of the SIA S&P/TSX Composite Index Report, having entered the SIA favored zone in March of 2023. Technical analysis identified both the relative strength of the engineering equities and ATRL.TO stock in particular. After breaking through resistance around $50, horizontal and vertical counts suggested new potential resistance levels near $71.20, $75.55, and $80.20. By November, shares reached the $70 level and encountered resistance at $71.16 on the 2% point-and-figure chart, before entering a short period of distribution, followed by a rally to $78.56, where selling pressure emerged again. During this period, the SIA Construction Equal Weight Index (EWI457) also faced resistance as selling pressure impacted most constituents. Consequently, the SIA Bullish Percent (BP) reading turned negative as EWI457 corrected. However, recent BP readings have turned positive, showing signs of support on the point-and-figure sector chart. Notably, throughout this time, the SIA Construction sector has remained strong in the SIA Market Sector Report, highlighted in green in the first PNF chart, with the SIA report overlay tool for visual clarity.
Given that the sector now appears to be under renewed accumulation, it is timely to revisit the ATRL.TO chart to assess potential new resistance levels. Although it can be challenging to identify these levels on a 1% or 2% PNF chart, a broader, long-term perspective often provides more insight, particularly when long-term trading ranges are penetrated and blue-sky resistance levels appear. The 5% PNF chart provided highlights a triple top breakout in July 2024, as well as green X's indicating its continued favored position within the SIA S&P/TSX Composite Index Report. Here, horizontal and vertical counts from the 2008-2019 range suggest a measured move of 11 boxes, placing resistance at $105.17, with the psychological level of $100.16 also a possible point of selling pressure. Additionally, the chart features a perfect SMAX score of 10 out of 10, which serves as a secondary vector of relative strength analysis against other asset classes, complementing the relative strength analysis within the SIA S&P/TSX Composite Index Report. Attached to the chart is a clipping from the SIA Platform, displaying all SIA reports where ATRL.TO is a member, demonstrating its high favorability by the SIA AI through millions of daily comparative analyses. If you enjoy our analysis, we humbly ask elite SIA advisors to consider a good next step for your associates and padawan learnersâencourage them to sign up for the SIA Platform to stay ahead of market trends and make informed, data-driven decisions.
Disclaimer: SIACharts Inc. specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investors investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIACharts Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.
