SIA Charts’ relative strength rankings help investors identify opportunities in stocks which are outperforming their peers or index benchmarks on a relative basis. With the prices of Gold and Silver soaring in recent months, precious metal producers have been climbing in our relative strength ranking tables.
Kinross Gold (K.TO) has bounced back from a winter dip in the SIA S&P/TSX 60 Index Report. It returned to the Green Favored Zone on March 28th and was featured in the Daily Stock Report on April 1st. Since then, the shares have continued to climb up the rankings and yesterday it moved into first place.
Since K.TO was last featured in the Daily Stock Report, its shares have rallied 16.4%, compared with a gain of only 0.3% for the S&P/TSX Composite Index, and a gain of 3.2% in the price of Gold over the same period.
This five-year weekly chart highlights the strength of the current recovery trend in Kinross Gold (K.TO) shares. A big selloff bottomed out in the summer of 2022 and by early 2023 Kinross had broken out of its downtrend. The shares have remained under accumulation over the last year, advancing in a Rising Channel of higher highs and higher lows.
In recent weeks, accumulation has accelerated. Kinross broke out of a bullish Ascending Triangle base clearing $8.25 back in March and has continued to rally since then, taking a run at the $10.00 round number. Next potential upside resistance after that appears near $11.25, the summer 2020 peak near $12.00, or $12.75 based on a measured move from the triangle.
Point and Figure Chart Extends a Rally
Kinross Gold (K.TO) shares continue to recover. When we last mentioned Kinross in the Daily Stock Report on April 1st, it had just staged a bullish Double Top breakout (lower support line). Since then the shares have been under consistent accumulation, advancing toward $10.00 and taking out previous highs to trade at their highest level since late 2020, extending an uptrend that has been underway for nearly two years. Previous column lows suggest next potential resistance may appear near $10.30, followed by $11.35, which is based on a vertical count, then the 2020 highs near $12.05. Initial support appears near $8.96 based on a 3-box reversal.
With a perfect bullish SMAX score (which is a near-term 1 to 90-day indicator comparing an asset against different equal-weight asset classes) of 10 out of 10, K.TO is exhibiting short-term strength across the asset classes.
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.
