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 SIA Market Intelligence Platform assists busy investment advisors by distilling massive amounts of data into actionable insights. Utilizing a top-down approach, the best companies from the top sectors and top stocks rise to the top of the SIA Relative Strength Matrix Reports, which we call the Favored Green Zone. Recently, U.S. Mid and Small Cap equities have been climbing the matrix reports of ETFs and Mutual Funds. Today, we delve into our SIA Russell 1000 Index Report and highlight a name frequently seen among portfolio managers like Mr. Buffett: NU Holdings Ltd. (NU). Nubank, a pioneering fintech company, is revolutionizing banking in Latin America with its ultimate goal of simplifying financial services through innovative technology and customer-centric solutions. NU Holdings stock has maintained a position in the Favored Green zone of the SIA Russell 1000 Index Report since summer 2023, shortly after its IPO on December 9, 2021. NU differentiates itself by offering a user-friendly digital banking experience with no fees, transparent services, and advanced technology. Customers and investors alike appreciate this concept, as evidenced by its rapid growth, with the customer base expanding to over 70 million users by early 2024. Given its solid rank and high relative strength against the other 999 names in the Russell 1000, NU holds the #19 position in this distinguished report. After a brief dip during the flash crash earlier this month, shares have rebounded significantly, climbing 245 positions this month and advancing another 31 spots for the quarter. This suggests that the flash crash was an excellent buying opportunity for this high-relative-strength stock. We have also added upper and lower trend lines to the weekly candlestick chart of NU. Aside from a short pullback to just under $10 earlier this month, NU shares have trended predictably, with minor support at $13, major support at $10, and further support at $8.50. Resistance remains at the $14 level, with the trading range between $11 and $14.
Turning to the Point and Figure (P&F) chart scaled at 2% for intermediate time-frame analysis, we see two major breakout points at $5.48 and $10.13. Breakouts beyond these levels have significantly improved the chart, with shares under the control of buyers. P&F charts are excellent for capturing price movements without the noise of time or volume, focusing solely on price changes. This method highlights significant trends and reversals, making it a powerful tool for identifying key support and resistance levels. Support and resistance levels are highlighted with horizontal lines at $10.33 (major support), $12.10, and the three-box reversal level of $12.84. Resistance is projected at $17.29 and $19.86, with $19.86 aligning with the $20 round number, a likely target for investors. With an almost perfect SMAX score of 9 out of 10, indicating strong near-term performance compared to other asset classes, NU Holdings Ltd. demonstrates very robust short-term performance.
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