Alimentation Couche-Tard (ATD.TO) has faced significant underperformance, with a -1.53% decline over the past month, -13.04% in the quarter, and -12.09% year-to-date. In contrast, its benchmark, the SIA S&P/TSX 60 Index Fund (EWIXIU.TO), has posted positive returns of +1.45% for the month, +4.50% for the quarter, and +4.97% year-to-date. The stock recently broke important support at $68, with the next potential support level now around $60 (see green line), while resistance is seen just above $70. Alimentation Couche-Tard (ATD.TO) has also seen its relative strength deteriorate, moving from a favored position to #48 in the SIA relative strength matrix, reflecting a weak trend within the broader market. The stock's beta of 0.68 indicates it may be less volatile than the overall market, but the current technical setup, along with its underperformance, could signal more challenges ahead.
The point and figure (P&F) chart analysis of Alimentation Couche-Tard (ATD.TO) shows key support levels at $58.63 and $53.10, with resistance at $72.89 and $80.48, which could guide future price movements based on a 9-year P&F chart. The color coding on the chart shows us where the shares of ATD.TO are trading within the SIA S&P/TSX 60 Index Report where it has moved from favored (green) to neutral (yellow) to now unfavored (red).
The stock may also face challenges in the short term, as reflected by its SIA SMAX score of 1, which further highlights is lack of relative strength, this time against a basket of other asset classes versus the above reading from the SIA S&P/TSX 60 Index Report.
This is coupled with the fact that within the SIA Sector Report, the retail sector is currently neutral, which lends very little to the technical picture from a sectorial perspective. Overall the technical picture of ATD.TO may be bleak with very little positives to report, where shares may have slipped through important support in and around the $68 level.
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