One of the best practices that elite SIA practitioners consistently complete without fail is a thorough review of the SIA market sector report, with particular attention paid to identifying the gainers and losers within various sectors. Completing this task today has once again reinforced the observation that the automotive sector may represent a promising area of opportunity, as evidenced by its notable +13 position weekly rise in the latest SIA report (see attached). With the quarterly performance now standing at an impressive +18.83%—a stark contrast to the S&P 500 Index's return of just +3.39%—the auto sector has outperformed the broader market by a factor of 5.55 times. While we’ve discussed the growing strength of this sector in recent quarters, today we will highlight another name within the auto space: Phinia Inc. (PHIN). Phinia Inc. is a global leader with over 100 years of experience in delivering innovative fuel and electrical systems tailored to vehicles and industrial applications. The company focuses heavily on sustainability through emissions control technologies, aimed at reducing carbon emissions and supporting the transition to a cleaner, more sustainable future. Technically, shares of PHIN currently rank high in the SIA Automotive Sector report, holding an impressive #5 position, and are also ranked favorably across all other reports in which it is a constituent.
Turning to the SIA point-and-figure chart attached, several important factors are highlighted for consideration. An SIA matrix position overlay has been added, which emphasizes the relative strength that PHIN shares currently command within the SIA automotive sector (indicated in green). Additionally, support and resistance levels have been plotted to aid in identifying potential entry points. Resistance stands at $57.10, the most recent high, and a vertical count based on the prior trading range an early breakout in autumn 2024 suggests a potential move toward the $60 level. Shares of PHIN currently carry an SMAX score of 8/10, reflecting a near-term measure of relative strength against a broad basket of other asset classes. Finally, PHIN shares appear to be forming a point-and-figure price discovery triangle, as illustrated by the thin black lines on the chart. This pattern suggests an ongoing interaction between buyers and sellers, with the relative strength calculations providing insight into the evolving dynamics of the market.
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