Thomson Reuters had been in the favored position within the SIA S&P/TSX 60 Index Report for just over two years, as illustrated in the SIA matrix position chart above. We can visually see its entry on June 27th, 2022, at a price of $134.37. TRI.TO exited the favored zone of this powerful SIA report on June 27th, 2024, at a price of $229.32. For elite SIA advisors who follow a rules-based methodology, this move represented a rally of 71%. TRI.TO shares have now moved through the neutral zone and have entered the unfavored red zone of this report, even though the share price hasn't pulled back much, still priced at $232.87. To view this differently, we can refer to the SIA point and figure chart, which is scaled at 2% and includes the SIA matrix position overlay tool. Here, we can also observe the significant move in the share price since it last entered the favored green zone of the SIA S&P/TSX 60 Index Report. Given the recent column of 'o's on the chart, we can deduce that, for now, sellers have regained control of the stock, with supply outweighing demand. Should the shares continue to pull back, support is notable at $213.31—a price that would complete a double-bottom point and figure sell signal on the 2% scaled chart. The next level of support would then be $178.49, with additional support possible at $155.38. If the shares continue their rally, buyers may face resistance at $240.22, $245.02 (the all-time high), and $270.53, a number derived from a vertical count off the previous column of Xs.
Another perspective on TRI.TO can be gained by examining the weekly candlestick chart, where two slopes have been added to form potential support levels at $160 and $200—the second of which corresponds with the psychological whole number often serving as hang markers for market traders. Also visible is the forming flag, where buyers and sellers are engaged in a period of price discovery as they digest the recent moves. A breakout above or beyond this flag will be crucial for establishing a new trend. However, this is happening against the backdrop of negative relative strength compared to other stocks in the SIA S&P/TSX 60 Index Report. Additionally, the SIA platform's comparisons with other asset classes have resulted in a negative SIA SMAX score, which has dropped to 4/10.
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