SIA Chartsā relative strength rankings help investors identify opportunities in stocks that are outperforming their peers or index benchmarks on a relative basis. Outperformance often reflects improving investor expectations for strong company or sector growth. The rankings help investors identify which stocks in a universe are outperforming or underperforming their peers, as well as when relative performance trends are changing. The strength of the SIA platform lies in its ability to identify these shifts in money flow trends.
Kinross Gold Corp (K.TO) was last commented on November 21, 2024, when the shares were trading at $13.96 and ranked third in the SIA S&P/TSX 60 Index Report. The shares initially entered the Favored Zone on March 28, 2024, at a price of $8.31. An update is warranted as the shares have continued to demonstrate strong relative strength and have moved higher in the rankings, rising three spots over the past month. The shares currently rank third in the SIA S&P/TSX 60 Index Report, with a closing price of $40.36. This represents a gain of 386% since entering the Favored Zone and an increase of 189% since the last update in November. This continues to highlight the benefits of remaining invested in stocks within the green Favored Zone and reinforces SIAās methodology of identifying and staying with winners that exhibit strong relative strength, particularly as market participation increases.
Reviewing the candlestick chart, the shares traded sideways throughout 2023 and into the early part of 2024. A breakout from this range occurred in late March 2024 when the price closed above the $8.50 level, coinciding with the Favored rating issued by the SIA algorithm in the SIA S&P/TSX 60 Index Report. The shares then advanced in an orderly uptrend through August, reaching the $22.00 area. From that point, the uptrend accelerated, with the shares advancing from $22.00 to approximately $40.00, representing nearly a doubling in price since the summer. The shares are now trading at all time highs following this parabolic advance. With this in mind, the Point and Figure chart will be examined to assess potential future price direction.
Reviewing the Point and Figure chart using a 2% scale, the shares recently reversed to the downside before finding support at the three box reversal level of $36.63. The shares have since recovered and completed a three box reversal to the upside, currently testing resistance at $40.44. If the prevailing uptrend continues and the shares break above this resistance level, the next upside targets are $43.77 and then $47.38.
On the downside, initial support remains at the three box reversal level of $36.63, followed by $34.52, which represents approximately a 50% retracement of the recent advance, and then $31.26. The shares currently display a bullish double top pattern and, with an SMAX score of 9 out of 10, continue to demonstrate strong near term strength relative to other asset classes.
Kinross is a Canadian based global senior gold mining company with operations and projects in the United States, Brazil, Mauritania, Chile, and Canada. The company focuses on delivering value through responsible mining, operational excellence, disciplined growth, and balance sheet strength. Kinross is listed on the Toronto Stock Exchange under the symbol K and on the New York Stock Exchange under the symbol KGC.
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