SIA Charts’ relative strength rankings help investors identify opportunities in stocks that are outperforming their peers or index benchmarks on a relative basis. Such outperformance often reflects improving investor expectations for company or sector growth. The rankings assist investors in identifying which stocks within a given universe are outperforming or underperforming their peers, as well as when relative performance trends may be changing. The strength of the SIA platform lies in its ability to identify these shifts in money flow trends.
Power Corp (POW.TO) was last commented on March 10, 2025, when the shares were trading at $50.35 and ranked sixth in the SIA S&P/TSX 60 Index Report. The shares initially entered the Favored Zone on February 27, 2025, at a price of $48.62. An update appears warranted, as the shares have continued to demonstrate strong relative strength and have moved higher in the rankings, rising nine spots over the past quarter. The shares currently rank fourth in the SIA S&P/TSX 60 Index Report, with a closing price of $71.93. This represents a gain of 48% since entering the Favored Zone and an increase of 43% since the last update in March. This performance continues to highlight the potential benefits of remaining invested in stocks within the green Favored Zone and reinforces SIA’s methodology of identifying and staying with stocks that exhibit strong relative strength, particularly as market participation appears to increase.
Reviewing the candlestick chart, the shares essentially traded sideways throughout 2021 and into the summer of 2024. A breakout from this range occurred in early September 2024, when the price closed above the $38.00 level. The shares then advanced in an orderly uptrend through the spring of 2025, reaching the $50.00 area. From that point, the uptrend appeared to accelerate, with the shares advancing from $50.00 to approximately $72.00, representing nearly a 50% increase in price since the spring. 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 help assess potential future price direction.
Reviewing the Point and Figure chart using a 2% scale, the parabolic action is clearly visible, as the shares are currently in a rising column of Xs lasting 22 boxes without a three box reversal. Following such a large advance, the shares may pause to digest these gains, with resistance currently at $73.82 and, above that, $84.79. If the shares reverse to the downside, support is identified at the three box reversal level of $66.86 and, below that, the $59.37 level. This level represents approximately the 50% retracement point, which may be a more appealing potential entry point given the magnitude of the recent move. The shares currently display a bullish double top pattern and, with an SMAX score of 8 out of 10, continue to demonstrate strong near term strength relative to other asset classes.
Power Corporation of Canada is a diversified holding company with interests in financial services, communications, and other business sectors through its controlling interests in Power Financial. Power Financial, in turn, holds controlling interests in Great-West Life, IGM Financial, and Pargesa, a holding company with interests in European companies. Power Corp. completed the buyout of the remaining shares of Power Financial in February 2020.
Disclaimer: SIACharts Inc. specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investors investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIACharts Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.
