Magna International Inc. (MG.TO) - February 10, 2025

Magna International Inc. (MG.TO) shares continue to be under pressure, trading around the $55 level, delivering a negative start to the year with an -8.18% return over the past month and a dismal -27.09% return over the past year. This negative performance has resulted in a poor SIA relative strength reading, with the shares continuing to trend lower within the SIA S&P/TSX 60 Index Report, where they are currently in position #53, deep in the SIA Unfavored zone. In the attached point and figure chart, we can see this negative (red) relative strength, with the SIA report overlay tool engaged, as the shares are lacking any relative performance whatsoever. It is notable that the shares have been stuck under the black intermediate negative trend since 2020. This declining formation of lower tops and lower bottoms is sharpening to a point where a conclusion, either to the upside or downside, may soon manifest. Notable levels to monitor for this breakout—either up or down—may appear at the $49.68 support level, or a move above initial resistance at $66.58, which is the 3-box reversal level on this 5% scaled chart, although resistance on the 2% scaled point and figure chart may be set a little tighter. In any case, relative strength is the SIA practitioner’s preferred methodology for identifying a turnaround, as relative outperformance often reflects improving investor expectations for stronger company or sector growth. Currently, however, this may not be painting the best picture, as the shares are underperforming relative to its peers within the many SIA reports in which MG.TO is a constituent. Additionally, its negative SIA SMAX score of 1/10 reflects weakness against other asset classes. Should the $49.68 support level fail, further support may be found at $33.63 and along the long-term trend line at $29.05. Should the shares pivot, hold the current support, and rally through the black line, the level at $84.97, and the top line (old high) level of $113.87, may become significant.

The next chart presented is the SIA monthly candlestick chart, where we want to highlight a few more diagnostics. The first is the red oval, which indicates the period of time when President Trump held power at the White House and when shares of MG.TO experienced Tariff 1.0. Surprisingly, shares held up nicely during this time, and the company didn’t experience a massive sell-off. The rally during President Biden's term in office was especially beneficial to MG.TO shareholders; however, shares have since corrected from their all-time highs of over $100 and are now cut in half at $50 as Trump returns to power. Here, the support is clearly observable just below the $50 level, and the negative trend line has been plotted to further present the narrowing wedge, along with diminishing volume plotted below.