MDA Space Ltd. (MDA.TO) - June 18, 2025

SIA Charts’ 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 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.

Increased Geopolitical tensions have buoyed the Aerospace and Defence (A&D) Sector of late with Defense stocks climbing. Earlier this week,

we highlighted the A&D Stock, RTX Corp., against this sector backdrop. Today we examine another example in the A&D space.

MDA Space Ltd. (MDA.TO) re-entered the Favored Zone of the SIA S&P/TSX Composite Index report on May 26th, and is showing extremely strong relative strength moves up the S&P/TSX Composite Index report gaining 1 spot in the last week and 85 spots in the last month, illustrating the consistent money flow increases in the shares over the past little while. Currently, the shares reside in the 36th spot in the report.

In looking at the attached candlestick chart of MDA, we see the shares bottomed out at the $5 area back in early 2023, which precedes a steady pattern of higher highs and higher lows which emerged from that point onward. In September of 2024, the uptrend intensified as the shares formed a parabolic move upwards from September until the top of this move at the end of December, when the shares hit the $30 level. A sharp but brief correction materialized where the shares pulled back all the way to the $21 area before finding their footing and re-accelerating to the upside from February until today. Most recently, we see the shares are nudging the $30 area once again and, if we see potential “follow through” strength, new all-time highs could be established.

In looking at the Point and Figure chart at a 2% scale for an investment grade analysis, we see the same parabolic move starting in October of 2024 through January 2025, where the shares established a strong column of rising X’s lasting 34 Boxes before hitting a ceiling at $29.08. This was followed by a short but rather sharp correction in February and March of this year

before finally finding support at $21.61, which was one box lower than the prior column of O’s where the shares found support at $22.04 in February. This proved to be a bear trap as we see the shares gain traction and now a new high has formed with the shares closing above the $29.66 level, one box above its prior high at $29.08 achieved in January. To guard against a possible bull trap, one may want to see if the shares can close above $30.25 to gain more confidence a new upleg has materialized.

If “follow-through” strength can continue, resistance is at $34.07 and above that, $39.92 based on a measured move. To the downside, support is at its 3-box reversal of $27.40 and below that, the $22.93 to $23.39 area. However, with a perfect SMAX score of 10 out of 10, MDA is exhibiting strong near-term strength against all the asset classes and is exhibiting a bullish Spread Double Top pattern.

MDA Space Ltd, formerly MDA Ltd, is a global space company. The Company is a robotics, satellite systems and Geo intelligence provider. It provides communications satellites and earth and space observation. It is also involved in space exploration and infrastructure. Its software, AURORA, is a digital satellite product line providing critical new solutions to operators. AURORA technology enables constellations to extend communication networks to every corner of the globe with digital automation, and robotics. Its communications satellites include a complete range of modular digital products and components for space-based communication solutions coupled with advanced manufacturing capable of producing two satellites a day. It owns and operates RADARSAT-2 earth observation satellite. Its earth observation services include analytics solutions that give customers information and insights from environmental monitoring, disaster management, maritime domain awareness, and security to mining.