Franco Nevada Corp - (FNV.TO) - November 16, 2023
Relative strength and capital flow analysis not only can help investors determine which stocks are showing the strongest performance and momentum but also the weakest performers. This doesn’t just apply to stocks relative to their overall universe but also within sectors.
Franco-Nevada (FNV.TO) is currently the lowest ranked gold stock in the SIA S&P/TSX 60 Index Report. After falling 25 positions in the last month, FNV.TO is currently in 56th place, near the bottom of the Red Unfavored Zone and is down 13.3% over the last month. Since exiting the green zone back in June, FNV.TO has fallen by 14.1%.
In contrast, the highest ranked gold stock in the SIA S&P/TSX 60 Index Report is Kinross Gold* (K.TO), which is currently ranked in second place, near the top of the Green Favored Zone, where it has been since March. Kinross is up 3.7% in the last month.
*Shares of Kinross Gold are held in portfolios managed by SIA Wealth Management.
A long-term uptrend in Franco-Nevada (FNV.TO) shares peaked back in May when the shares failed to break through resistance at their 2020 high near $216.65. Since then, the shares have been tumbling back downward falling back under the $200.00 round number in July.
Over the last six weeks, the shares have weakened considerably, with two bearish Double Bottom breakdowns combining into a Bearish Catapult, and the shares snapping a long-term uptrend support line.
Initial downside support appears at the September 2022 low near $151.70, followed by the $129.45 to $134.70 area where two horizontal counts cluster with previous lows. Initial resistance on a bounce appears near $177.75 based on a 3-box reversal.
With a perfect bearish SMAX score of 0, FNV.TO is exhibiting weakness across the asset classes.
Since July of 2022, when a two-year downtrend bottomed out, a recovery trend has been underway in Kinross Gold* shares. Since then, higher lows have established a new uptrend and K.TO snapped out of its previous downtrend earlier this year,
Over the summer, the shares consolidated between $6.00 and $7.25. but have come under renewed accumulation in the last month or so. In October the shares completed a bullish Bear Trap reversal when they broke down by one row, completing a spread triple bottom. K.TO then reversed sharply upward with a bullish Double Top calling off the bearish pattern, a bullish Spread Double Top breakout confirming the start of a new upleg, and the shares rallying to their highest levels since April of 2022.
Initial upside resistance appears near $8.10 based on a vertical count, followed by $8.60 based on a horizontal cont. In initial support appears near $6.90 based on a 3-box reversal.
With a perfect SMAX score of 10, K.TO is exhibiting strength across the asset classes.
*Shares of Kinross Gold are held in portfolios managed by SIA Wealth Management.
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