Major resistance for Precision Drilling is $14.50
The most important points from the above chart for Precision Drilling are:
- The chart is still in a uptrend.
- There was no follow-through on the Tuesday sell-off.
- Major resistance on this candlestick chart is $14.50.
- Major support on the chart is $12.00.
You should maintain a neutral trading strategy at this stage with alerts at $14.00 and $13.00. A close above $14.00 will indicate a possible attempt to break resistance at $14.50. You could add to long positions with a close above $14.50 but this depends on the volume and other indicators at the time of the break. A close below $13.00 would indicate a possible test of support at $12.00. You would liquidate long positions if the stock closed below $12.00 with the next support test at $10.50.
Reference BigChart.com for the most recent one year daily chart.
Update for April 20, 2011: RBC raises Precision Drilling Corp price target to C$16 from C$12.50; rating outperform.
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.