Having identified Kinross as the top leader within the SIA S&P/TSX 60 Index Report in the Equity Leaders Weekly Newsletter, a look at the laggards within this report revealed Barrick Gold Corp. (ABX.TO) as an interesting underperforming case. In a "one of these things is not like the other" moment, it’s worth digging deeper into some of the SIA technical readings behind ABX.TO. The first table presents the SIA matrix position chart, which shows Barrick’s position within the report over time. Here, it is evident that after flirting with the favored zone in early 2023, Barrick experienced a steady decline over the past six quarters. This lack of relative strength against its peers within the 60 names in the report raises a red flag for SIA rules-based practitioners, who would likely favor Kinross Gold instead, as it consistently remained in the favored zone for much of this period. For those invested in Barrick or interested for other reasons, the point-and-figure chart scaled at 2% captures longer-term support and resistance levels. The SIA matrix position overlay, which displays Barrick's position within the SIA S&P/TSX 60 Index Report, is also included. Shares are currently at support levels of $21.51, with further support at $20.27 and $18.36, all stemming from long-term consolidation patterns dating back to 2022. Resistance levels are found at $23.75, $25.70, and the top resistance at $29.53, where supply gains the upper hand. A move above these levels would be needed to confirm that buyers are regaining control. Looking at Barrick’s relative strength against other asset classes, the SMAX score is 1 out of a possible 10—an possible indication of weak near-term strength relative to other asset classes.
The final piece of this technical analysis compares ABX.TO to the top-ranked stock in the SIA report, Kinross Gold Corp. (K.TO). The performance gap between the two is stark. Over the past three years, Kinross has outperformed Barrick by a 4-to-1 ratio, highlighting the power of the SIA system in identifying strong performers and as more importantly avoiding lackluster performance. Outperformance may reflect underlying fundamentals that are not yet widely recognized, but which the SIA system detects through millions of calculations performed each week. This system empowers advisors to focus on client-facing tasks, rather than trying to compete with a relentless stream of big data.
For those interested in understanding how to integrate this technology into advisory practices, reach out to our account managers, who would be happy to assist with software integration and show how the system can add value to your practice.
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