Tag Archives: near-term trend

DJIA daily candlestick chart

Doji candlestick represents indecision today for the DJIA
Daily candlestick chart for the DJIA showing the near-term resistance level of 12,300.

DJIA Daily Candlestick Charty

The key points from this chart of the Dow Jones Industrial Average is the resistance level of 12,300 and major resistance of 12,800. And we have the near-term uptrend so there is a good chance that the index can break 12,300 which would then become the new support level.

Reference last Friday’s chart analysis for the Dow Jones Industrial Average based on the weekly chart.

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The main purpose of TradeOnline.ca is a starting point for your own chart analysis. Technical analysis serves as a guidepost in your daily investment analysis and is used in conjunction with fundamental analysis. There is no magic formula for making profits when you trade online in the stock market. We are all students of the market, and one should never give up reviewing and learning the basics. Visit the Advanced Chart Settings and customize BigCharts so you can review different time periods.

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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.

© 2011 TradeOnline.ca

BCE (BCE:TSX) chart analysis

Chart for BCE tells the story: Trade in the direction of the trend
BCE candlestick chart analysis showing a major uptrend, a intermediate uptrend and an near-term uptrend.  On balance volume is confirming the uptrend along with volume and RSI.

BCE (BCE:TSX) Weekly chart

The #1 rule of technical analysis is to always trade in the direction of the trend. And the chart for BCE is a good example why this is a profitable strategy: Just jump aboard the train and enjoy the ride.

Reference the last chart analysis for BCE posted on May 13, 2011.

Relevant articles picked from the Web:

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The main purpose of TradeOnline.ca is a starting point for your own chart analysis. Technical analysis serves as a guidepost in your daily investment analysis and is used in conjunction with fundamental analysis. There is no magic formula for making profits when you trade online in the stock market. We are all students of the market, and one should never give up reviewing and learning the basics. Visit the Advanced Chart Settings and customize BigCharts so you can review different time periods.

______________________________

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.

© 2011 TradeOnline.ca

Canadian Natural Resources (CNQ:TSX) chart analysis

Bullish white candlestick on the daily chart for CNQ
Candlestick chart analysis for Canadian Natural Resources (CNQ:TSX) showing a bullish white candlestick on the daily chart.  Major resistance is at $40.00 and confirming indicators of volume and rsi are identified in the chart analysis.

CNQ Daily Candlestick Chart

Candlestick chart analysis for Canadian Natural Resources showing a harami cross and a tweezers top. This could be a significant reversal indicator.

CNQ Chart for Nov 4, 2011

The above candlestick chart highlights the bullish candlestick for Thursday, Nov 3, 2011. I always look for follow-through after a tall bullish white candlestick. But you have to analyze individual company charts in the context of the overall market. And in this volatile market nimble traders will take profits on near-term gains. Major resistance of $40.00 is around the 200-day simple moving average which can be seen on a weekly chart.

The chart to the right is a snippet from the daily chart for Friday, Nov 4, 2011. The harami cross candlestick pattern in combination with a tweezers top could be an indicator of a reversal in the near-term uptrend. The bulls did on persevere on Friday.

Reference the last chart analysis for Canadian Natural Resources.

Reference the website for Canadian Natural Resources to review the fundamental data.

The main purpose of TradeOnline.ca is a starting point for your own analysis. Technical analysis serves as a guidepost in your daily investment analysis and is used in conjunction with fundamental analysis. There is no magic formula for making profits in the stock market. We are all students of the market, and one should never give up reviewing and learning the basics. Visit the Advanced Chart Settings and customize BigCharts so you can review different time periods.

______________________________

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.

© 2011 TradeOnline.ca

Precision Drilling (PD:TSX) chart analysis

Can Precision Drilling maintain the near-term uptrend?
Candlestick chart analysis for Precision Drilling (PD:TSX) showing the near-term uptrend  with support and resistance levels.

Precision Drilling Candlestick chart

Reference the last chart analysis for Precision Drilling.

Precision Drilling Corporation (“Precision”) intends to release its 2011 third quarter results
before the market opens on Friday, October 21, 2011 and has scheduled a conference call and
webcast to begin promptly at 12:00 Noon MT (2:00 p.m. ET) on the same day.

FP article dated Oct 21, 2011: Precision Drilling earnings surge 48%

Update Friday, Oct 21, 2011: Stock sold-off to the $11.00 level as indicated by a bearish engulfing pattern on the daily chart: sold into the news of the earnings release. Traders who bought the stock at the beginning of the month took profits on the gain from $8.00 to $12.00: a nice profit of 50%.

Update Monday, Oct 24, 2011: Precision Drilling closed at $11.87 today.  The stock pattern may indicate that it will ease into a lateral band between $11.00 and $12.00.  A close above the $12.00 resistance level for two days would be a sign to add to long positions with an intermediate target of $15.00.  If the stock cannot hold the $11.00 level, it would be a sign to liquidate longs.

Update Monday, Oct 31, 2011: Precision Drilling closed at $11.56 today. A tall bearish candlestick (daily candlestick chart) after two spinning tops is not a good omen. Another negative factor is the above average volume today on the sell-off. If the stock cannot hold support at $11.00, the next major test would be the 50% retracement level of around $10.00.

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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.

© 2011 TradeOnline.ca

TSX Index candlestick chart analysis

TSX Index in a lateral trading band

TSX Index candlestick chart analysis showing the support and resistance levels.  The relative strength indicator (RSI) is below 50 and trending down.

TSX Index Weekly Candlestick chart

Reference the last chart analysis for the TSX Index.

Interesting Financial Post article dated Oct 12, 2011: Energy stocks ‘discounting armageddon’

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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.

© 2011 TradeOnline.ca

Dundee REIT (D.UN:TSX) candlestick chart analysis

Dundee Real Estate Investment Trust in an uptrend
Technical analysis of Dundee REIT using the 3-year candlestick weekly chart showing the stock in an uptrend

Dundee REIT (D.UN:TSX) Three-Year Weekly Chart

Reference the previous chart analysis for Dundee REIT.

Update July 21, 2011: Dundee grabs office buildings

Update January 24, 2012: ScotiaPlaza sale should provide boost to REITs

Near-Term trend for BMO is up

This 6-month daily candlestick chart for BMO reveals that the near-term trend is up and the intermediate trend is sideways.
Bank of Montreal (BMO) 6 month candlestick chart reveals that the near-term trend is up and the stock will meet heavy resistance at $62

BMO - 6-Month Daily Chart

The most important concept in technical analysis is the trend: you always trade in the direction of the trend.  The near-term trend for BMO, last three weeks,  is up  and is defined by the 10 day simple moving average (SMA) which is above both the 20 day and 40 day averages. The intermediate trend, last six months, is sideways with support at $58 and resistance at $62.

This brings up the another important concept in technical analysis — support and resistance.  Take a look at the chart.  BMO could not break $62 on three attempts over the last six months.  Both the bulls and the bears have memories of this price point. BMO will meet technical resistance at $62 in this rally.

The three confirming indicators:

  1. Volume is relatively light which is a negative indicator.
  2. On Balance Volume (OBV) is trending up with the move which is good.
  3. Relative Strength Index (RSI) is trending up which is good.

The shaven head ( stock closed at the high for the day)  white candlestick for Thursday was positive for the bulls.

Bank of Montreal was last featured on  tradeonline.ca on January 7, 2011

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Note: This analysis is for educational purposes so you can learn to trade online using candlestick charts. Please conduct your own 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.

Copyright © TradeOnline.ca All rights reserved

Shooting Star Candlestick for Shoppers Drug Mart

A shooting star candlestick developed on the daily candlestick chart which can be compared to a caution light.

It shows that the rally could not be maintained.  The stock opened at $40.82, above the close for the previous day’s bullish white candlestick, which was a strong opening.  But the bulls could not maintain the push  as the stock rallied to a high of $41.59 where there was selling pressure and the stock closed at $40.87: this was not a good day for the bulls.

Candlestick Analysis - shooting star candlestick for Shoppers Drug Mart

3-Month Daily Candlestick Chart

The trend is the most important concept in technical analysis. The intermediate trend (3 weeks to 3 months) is sideways and the near-term trend (within the last 3 weeks) is up. What we are trying to establish in this analysis is the likelihood of the near-term trend continuing upwards. Today, there is a hint of caution which you can see pictorially in the shooting star candlestick pattern.

Another important concept in technical analysis is support and resistance. On Monday, Shoppers Drug Mart closed above resistance at $40. This has been resistance for the last four months. The $40 price point reverses rolls and is now support for this stock. A close below $40 would be very negative for the near-term trend for Shoppers.