Today we will touch on two important data sets as we build our Daily Stock Report, and in doing so, we hope to demonstrate how the work that is done systematically within the SIA platform can build on the work done in the previous week. Recall that last week we spent a good deal of time working through a live example of reviewing the SIA Sector Scopes to assess risk and scan for opportunities at the sector level. We then took this to the next level as we dug into the insurance sector, which was exhibiting good SIA technical attributes. Today, we add another wrinkle to this exercise by first noticing that over the past week, there have been some really important developments within the SIA Asset Class Rank, which now has CAD Equity in the #1 position, swapping places with U.S. Equity as the leading SIA-ranked asset class. In light of this change, today we dug into the SIA Canadian Equity report for ideas, and we found a treasure trove of ideas within the Insurance sector. One such name is Power Corp., which in its own right may be building better and better SIA technical attributes. In the first chart presented, we have the SIA matrix position chart, which shows shares of POW.TO rallying up the matrix into the SIA favored zone of the SIA S&P/TSX 60 Index Report, which, taken independently, is a super powerful feat, as relative strength is SIA's main coach. Next, we have presented a point and figure (PNF) chart attached, which is scaled at 2% for an investment-grade level view of price action of POW.TO. Here, we find another chart actually moving higher during the period of high volatility that has defined market activity in early 2025. Supportive levels can be seen at the $46.04, $41.70, and $38.52 levels, while resistance is extrapolated from prior PNF consolidation ranges up to $58.39 and $64.46. Here again, we find Power, a member of the SIA Insurance Sector, which is exhibiting strong relative strength as a group, along with a perfect score within the SIA SMAX calculation of 10 out of 10.
In the next chart, we have presented a shorter-term weekly candlestick chart of POW.TO in an effort to highlight the growing interest in the shares as prices have moved up from $43 to $50 during a period when the overall market has struggled. This is further reinforced with the building volume on the chart over the past several weeks as selling pressure on the main market has worsened. Here we can also observe the $47 level as old resistance (now support), where the tall green candle penetrated this old resistance with vigor, established it as support over the last few weeks, and potentially appears comfortable to take it even higher still.
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