From SIA Charts - Originally Posted June 24th, 2025
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Shares of Canadian Tire Corp. (CTC.A.TO) have begun to advance within the SIA S&P/TSX 60 Index Report after residing in the unfavored zone for the last several years. This upward movement is illustrated in the attached SIA matrix position chart, which shows the shares rallying on a relative basis into the yellow neutral zone of the report, now holding position #23. This represents a move up 7 spots in the past week, 18 spots in the past month, and 31 positions in the past quarter, making it the second largest relative strength gainer over the past quarter behind Cameco Corp (up 52 spots).

On an absolute performance basis, shares of CTC.A.TO have moved 9.47% higher in the past month and 25.85% over the past quarter. Compared to the benchmark SIA S&P/TSX 60 Index Fund (EWIXIU.TO), shares of Canadian Tire Corp are up 24.42% year to date, while the benchmark is up 15.84%.

In the first attached chart, the weekly candlestick chart with Bollinger Bands at ±2 sigmas highlights that the shares are trading beyond their usual statistical bounds. This may reflect the strength of the upside move observed so far this year, although the position could be ahead of historical averages, where a return to more normal metrics might provide more balanced risk and reward entry points. As CTC.A.TO shares have shown relative outperformance, price action may also reflect a breakout above long-term resistance at $170, a level dating back to 2021.

The point and figure chart also reflects the recent rally, with the shares touching trendline support in March before reversing into a column of X and moving higher. This movement has resulted in the completion of a double top and two spread double tops, the second of which coincides with long term resistance at $182.22 near the current level of $183.95. Using several vertical counts, point and figure resistance could be extrapolated initially at $189.58, followed by $217.77 and $235.72. Support levels may appear at the 3-box reversal point of $168.35, followed by $149.49 and the trendline support zone between $140.86 and $138.10. CTC.A.TO currently carries a perfect SMAX reading of 10 out of 10, which may reflect strong relative strength versus a basket of alternative asset classes including cash, bonds, equities, commodities, and currencies.

Canadian Tire Corporation, one of Canada’s largest and most recognized retailers, has expanded beyond traditional retail and automotive operations into developing sectors such as animal care and logistics automation. Through a strategic partnership with Petco, pet focused shop in shop installations have been introduced across most stores, which could support the emergence of animal care as a growing business segment. At the same time, Canadian Tire is supporting NuPort Robotics, a Canadian firm focused on autonomous trucking technology for warehouse to store logistics. These developments may signal broader efforts to modernize operations and align retail scale with evolving technology infrastructure.

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