SIA Charts’ relative strength rankings assist investors in identifying stocks that are outperforming their peers or index benchmarks. Outperformance typically indicates positive investor expectations for a company or sector, while underperformance can signal the opposite, which is equally significant. To illustrate this, let’s review the shares of Nutrien Ltd. (NTR.TO). The last time we highlighted Nutrien in our Daily Stock Report was on August 9, 2024. Back then, the shares were exhibiting a steady downtrend since its peak in early 2022. The shares were firmly positioned in the unfavorable red zone across multiple reports on the SIA Platform, including the SIA S&P/TSX Composite Index. The SIA Platform issued an unfavored signal back on November 3, 2022, at a price of $97.93. The shares hit a potential bottom at $60.74 back last September. Currently the shares have strengthened to our yellow neutral zone and has regained a positive SMAX. While this is not yet a call to action, it warrants closer attention as a stock to watch for potential recovery to a favored signal. Let’s dive in and see what the chart looks like today. In looking at the attached Candlestick chart, we see that since September, the shares are attempting to find a base building pattern as it tries to consolidate here between the $60.00 to $77.00 trading range. Near term resistance is at the top of this range at $77.00. If the price breaks above this level and establishes a higher high, a potential trend change may emerge, with the next resistance and establish a higher high a potential change in trend may emerge with next resistance at approximately $85.00. Support is at the bottom of this range at $60.00.
Since the unfavored signal was triggered back on November 3rd of 2022 at a price of $97.93, the shares are down approximately 24% from today’s price of $74.52 and down 38% from its potential bottom at $60.74 back in September. This exemplifies the power of the SIA AI Platform and the power of relative strength. What is most interesting is back in our last commentary on Nutrien back in August we identified $60.39 as a potential support level which, to date, has held also showing you the power of Point and Figure Analysis. In looking at the Point and Figure chart at a 2% scale today, we see a strong rally with a rising column of X’s formed starting in January and into February which coincided with a rise above the long term downtrend (red line). This also coincides with when the shares entered the Neutral Zone of the SIA S&P/TSX Composite Index report when applying the Report Overlay Indicator. The shares have faded somewhat, and support is now at $67.75 the long term uptrend (rising green line) and below that, $62.59 and $58.98. To the upside, resistance is at the $76.30 to $77.83 range then above that, the $84.24 level. With a SMAX score of 8 out of 10, NTR.TO is showing near term strength against all asset classes.
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