Royal Bank of Canada - (RY.TO) - September 9, 2024
Royal Bank (RY.TO) has recently joined the Favored Green Zone of the SIA S&P/TSX 60 Index Report in position #15, breaking through the $150 resistance level and reaching $164.08. This marks a significant turnaround from its previous performance, where it had been trending in the Neutral Yellow Zone and UnFavored Red Zone for nearly two years. The bank’s shares have gained 41.15% over the past year, with a notable 26.16% increase in 2024 and 10.90% in the past month alone. The weekly candlestick chart confirms this move, showing a clear break through the $150 level while maintaining a near-perfect trend line from the November 2023 low of $110. This recent surge in Royal Bank’s performance is a new phenomenon compared to its historical relative performance. The shift reflects a broader market adjustment, where traditional banks are regaining favor amid expectations of lower interest rates. While insurance stocks like Manulife and Intact have already entered the Favored Green Zones, pure bankers like Royal Bank are now also gaining attention, marking a significant change in the investment landscape.
Using the Point and Figure chart, we see that shares of RY.TO, which consolidated between $109 and $133 in 2021, broke through the $133 resistance in early summer, moving to $135.66. Support is now clear at $133 and at the 3-box reversal level of $149.78, while resistance is at $182.58 based on the vertical count of the prior consolidation range, with an additional resistance level at $201.58, reflecting a psychological whole number. Additionally, Royal Bank’s SMAX score has improved to a perfect 10 out of 10, indicating strong short-term performance relative to all asset classes.
Disclaimer: SIACharts Inc. specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investors investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIACharts Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.