Always trade in the direction of the major trend
This is not the first time I have posted a chart for BCE where I emphasized the most important principle of technical analysis: Always trade in the direction of the major trend. Is there any doubt about the major trend for BCE? The 200 Day SMA is a good approximation of the trendline.
The current resistance level is $43.00 and there is a good chance that BCE will break above this resistance level when it reports before the bell on Wednesday.
Compare the above chart for BCE to the chart for the TSX Index.
The following are samples of my previous posts for BCE:
- Chart for BCE tells the story — December 9, 2011
- What was the reaction on the chart to the earnings release for BCE? — May 12, 2011
- Two shaven head candlesticks bode well for the uptrend — May 9, 2011
- Is there any doubt about the trend for BCE? — January 27, 2011
Must read articles from the Web:
- Is Bell too big? — Globe — September 1, 2012
Note: This technical analysis is for educational purposes so you can learn to trade online using candlestick charts. Please conduct your own chart analysis or consult your financial advisor before making investment decisions. The chart snippets are from BigCharts.com which I recommend and have used for fifteen years. The author of this article may hold long or short positions in the featured stock or index.
© 2012 TradeOnline.ca