SIA Chartsā Relative Strength rankings not only help investors to identify which stocks in a universe are outperforming and underperforming against their peers, but also when relative performance trends are changing.
In todayās edition of the Daily Stock Report, we are going to explore Celestica Inc. (CLS.TO). Celestica entered the favored zone in the SIA S&P/TSX Composite Index on May 14, 2025, at a price of $158.62 and has remained in the favored zone ever since. As of yesterdayās close, the shares are at $338.16 which represents a more than doubling in price over just 4 monthās time. Currently Celestica sits in the 8th spot out of 212 in the S&P/TSX Composite Index report, up 13 spots in the last week and 46 spots in the last quarter. By translating global money flows into opportunities identified within the green favored zone, the SIA Algorithm empowers advisors to stay aligned with market momentum.
Letās turn our attention now to the shorter-term daily candlestick chart so see what lies ahead for the name after such a massive move in the last little while. In early April of this year, we see the shares found a bottom at the $90.00 level. At that time an uptrend materialized, which remains intact today. On Sept 5th, we see a āgap upā in the chart aligning with Semiconductor Stock Broadcom's reporting of stellar earnings and news of a newly clinched $10 billion custom chip supply deal with OpenAI. Observing investors highly expected that the new deal would translate to Celestica Inc. in terms of revenues, having been a longtime manufacturing and supply chain partner of the semiconductor giant.
Of importance today, the last 3 daily candlesticks very closely resemble shooting star candles. A shooting star is a candlestick that indicates the bears might be taking control, at least in the short term. It's pretty easy to recognize: It has a small real body at the lower end, a long upper shadow, and little or no lower shadow. This structure says that buyers initially pushed the price significantly higher, but strong resistance from sellers, or the exhaustion of buying power, forced the price back down to a close near the open, indicating a loss of bullish momentum. After such a strong move, it seems the shares may want to pullback and consolidate in order to digest their recent gains. A pullback to the $295 to $300 level would align with the price range associated with the recent gap up on the chart, potentially filling that gap.
Letās look at the Point and Figure chart on a 2% scale to identify more precise support and resistance levels after such a large move. We have also overlaid the Report Overlay Tool with the S&P/TSX Composite Index report to show how the shares have performed while in the green favored zones over time. Currently, the shares are making new all-time highs beginning when the shares broke above the $298.15 level earlier this month.
A column of rising Xās is now in place, lasting 11 boxes so far without even a 3-box reversal. Based on a measured move, upcoming resistance is quickly approaching at the $349.31 level. If the shares reverse, after such a strong move, support can be found at its 3 box reversal of $ $310.18 and, below that, $292.29.
With a perfect SMAX score of 10 out of 10, CLS.TO is exhibiting very strong short term strength against the asset classes, and has a bullish Spread Double Top Pattern against a favorable sector backdrop as the Electronics and Semi-Conductor space is currently ranked as a favored sector.
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