Power Corp - (POW.TO) - July 17, 2023
In today’s edition of the Daily Stock Report, we are going to feature Power Corp (POW.TO). This is the first time we have looked at Power Corp in almost two years. Power Corp has shown consistent strength over the last little while moving up 2 spots in the last month and 10 spots in the last quarter in SIA’s TSX 60 Index Report.
It Initially entered the Favored Zone back on March 7th, then briefly retreated to the Neutral Zone later in the Spring. However, throughout its time in the Neutral Zone, the shares retained its Positive SMAX score. Now the shares have re-entered the Green Zone back on June 15th.
Currently the shares sit in the Favored Zone in the SIA TSX 60 Index in the #13 spot of the report. Power Corp is a diversified holding company with interests in financial services, communications, and other business sectors through its controlling interests in Great-West Life (an insurance conglomerate), IGM Financial (Canada's largest nonbank asset manager), and other alternative asset-management platforms. In looking at the Candlestick Chart, we see the stock has been in a steady uptrend since October of last year at a price of approximately $29.00. A classic inverse head and shoulders bottom appeared with the head in October and the shoulders at the June 2002 and late December 2022 bottom. Since then, we see a steady uptrend in place confirming the shares are in accumulation phase with the shares breaking above its neckline at the $34.50 area and a golden cross forming when the 50 day MA crossed above the 200 day MA in late January.
A brief pullback materialized late last month where the shares successfully found support at its 200 day MA at approximately $33.25 and is now trading above its prior resistance at $36.50. New Support can be found at the $35.25 area where the 50 Day MA lies. Resistance can be found at the $39.50 to $40.00 area.
In looking at a 2% scale on a Point the Figure Chart, we see the shares have been very strong with a steady uptrend since its late December bottom. A pullback ensued in April with a column of 0’s lasting 4 boxes. Now we see the shares in a rising column of X’s which is still in place today. If the shares manage to remain strong, resistance can be found at its all-time high near $39.46. If they manage to break above this all-important price point, next resistance can be found at approximately the $45.00 area. Support can be found at its 3-box reversal of $34.35 and, below that, the $29.90 to $30.50 area. With an SMAX of 10 out of 10, POW.TO is exhibiting near term strength against all the asset classes.
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