SIA Chartsā relative strength rankings help investors identify opportunities in stocks which are outperforming their peers or index benchmarks on a relative basis. Outperformance often reflects improving investor expectations for strong company growth or sector growth. The 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.
In recent days, we looked at an Agriculture stock, Nutrien Ltd., in our daily commentary as stocks which had begun forming initial positive moves. Against this sector backdrop, today we take a look at another example in the agriculture area.
Corteva Inc. (CTVA) recently entered the Favored Zone of the SIA S&P 500 Index report on May 9th, and is showing extremely strong relative strength moves up the S&P 500 report gaining 2 spots in the last day, 50 spots in the last week, 51 spots in the last month and 72 spots in the last quarter; exemplifying the consistent money flow increases in the shares over the past little while. Currently, the shares reside in the 109th spot out of 505 positions in the report.
In looking at the attached candlestick chart of CTVA, we see the shares trend upwards from the Spring of 2020 up until the end of 2022 when it bumped its head at the $65 area. Then a one-year pullback ensued from late 2022 to late 2023 when the shares found a floor at the $43 handle. An uptrend re-asserted itself late in 2023 as the shares formed a consistent pattern of higher highs and higher lows up until today. Most interestingly, we see the shares break above the prior high at the $65 area where the shares found resistance back in Dec 2022 and now have established new all-time highs with the shares currently trading at $67.90. New resistance can now be found at the approximately the $75 area based on a measured move while support is at $65 which was the prior resistance level.
In looking at the Point and Figure chart at a 2% scale for an investment grade analysis, we see the shares hit resistance twice at $66.83 in November of 2022 and February of 2025. Interestingly enough, the shares pulled back in 2023 but found support at the long-term uptrend (green) line in early 2024 and also most recently earlier this month. In this month alone, the shares have been very strong with a rising column of Xās lasting 9 boxes and has broken above the prior resistance level of $66.83 which was very strong resistance from the aforementioned November 2022 and February 2025 time points. New resistance is now at $75.26. On the downside, support is at its 3-box reversal of $61.74 and, below that, $55.92 which is where the long-term uptrend line resides. The shares currently exhibit a bullish spread Double Top pattern and with an SMAX score of 10 out of 10, the shares are exhibiting strong near-term strength against the asset classes.
Corteva was formed in 2019 as the agriculture division of the DowDuPont merger and subsequent separation. The company is a leader in the development of new seed and crop chemicals products. Seeds generate a little over half of total company profits and crop protection chemicals make up the remainder. Although Corteva operates globally, around half of revenue comes from North America.
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