SIA Chartsâ 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.
Today we will update the charts of Wheaton Precious Metals having last reported on the shares on April 15th, 2024, when its share price was pushing up against four years of resistance at the $72 level.
Reviewing the long-term chart of Wheaton Precious Metal in terms of its relative performance within the SIA S&P/TSX 60 report history as coded in the R/S chart and color coded in the candlestick & point and figure charts, we can see that there are approximately 5 distinctive relative strength phases.
In the latest phase we see that the shares were pushing up against long-term resistance at a time when it was re-entering the Favored Green zone and its attempt to break through was this time successful.
As such, WPM.TO surged up to the $78 level before settling back to the old resistance, now new support at $70-$72.
This is all good news as it appears that this high relative strength stock did not produce a bear trap above the $72 resistance level but rather decisively rallied through resistance and is settling back nicely into its new zone of support, a good entry point for new investors or those looking to add.
Turning our attention to the point and figure chart we can see again the five phases of relative strength over the past many years in the color coding of red, yellow, green.
Having broken through resistance at the whole number of $70, WPM.TO rallied up to almost $80 before supply took control only to find its zone of support at $69.23-$70.61. Note that further support is not far below $70.61 at the $67.87 level and more still at $65.24.
A new shorter-term zone of resistance has now formed between the three-box reversal at $77.96 and the prior column of Xâs at $79.52 but longer term resistance continues to be at the $93.17 level in terms of a measured moved as per our prior report of April 15th.
With a SMAX score (which is a near-term 1 to 90-day indicator comparing an asset against different equal-weight asset classes) of 7 out of 10, WPM.TO is exhibiting short-term strength across the asset classes.
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