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Nutrien Ltd - (NTR.TO) - November 1, 2023

Shares of fertilizer producer Nutrien (NTR.TO) provide a reminder of how SIA Charts rankings empower advisors and investors to manage risk by avoiding struggling situations that are seeing ongoing capital outflows.

Nutrien has been stuck in the Red Unfavored Zone of the SIA S&P/TSX 60 Index report for nearly a year now. Over this time, they have declined in value by 33.5%, compared with a 1-year decline of 3.75% for the S&P/TSX 60 Index.

Back in August, the shares climbed up off of rock bottom where they spent May-July, but they were unable to escape from the Red Unfavored Zone, and recently they have started to tumble back downwards again. Yesterday, Nutrien finished in 46th place, down 4 spots on the day. Nutrien (NTR.TO) shares have been under distribution for the last eighteen months, establishing a long-term downtrend of lower highs that has steepened in recent months. Since March, the shares have consistently traded below their 200-day moving average.

Back in the summer, the shares tried to stage a rebound, rallying up off the $70.00 support level, but this ran out of gas near $90.00 where an old support level reversed polarity to become resistance. Since then, the shares have resumed their downward course within this range, recently dropping back under $80.00 which now appears to be initial resistance. On a breakdown below $70.00, a measured move suggests that the $50.00 round number could potentially be probed.

Since peaking back in April of 2022, Nutrien (NTR.TO) shares have been under distribution establishing a downtrend of consistently lower highs. Since March in particular, NTR.TO has staged a series of bearish Double Bottom breakdowns, including one in October, broken only by a low pole warning in August with that rally failing at a previous breakdown point near $90.00. Most recently, the shares have broken below the extension of an old 45-degree support line, indicating ongoing selling pressure.

Next potential downside support appears at previous column highs and lows near $67.35, followed by $58.65 based on a horizontal count and $51.05, based on a vertical count. Initial resistance appears near $82.15 based on a 3-box reversal.

With a bearish SMAX score of 1, NTR.TO is exhibiting weakness against the asset classes.

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