Two shaven head candlesticks bode well for the uptrend
Updated BCE chart analysis published August 3, 2012
Some key points from the above daily chart are:
- A bullish shaven head (closes on the high) candlestick has closed above resistance of $36.75.
- The near-term trend is up as indicated by the two bullish candlesticks.
- On Balance Volume (OBV) is confirming the near-term uptrend.
- The MACD is confirming the near-term uptrend.
- Volume is ok but a little light for the two bullish candlesticks.
I use the above analysis as one of the inputs for a derivative trading strategy. Derivatives will not be reviewed in this post.
Reference the previous analysis of BCE based on the weekly chart.
BCE will release quarterly results on Thursday, May 12, 2011. It is important to monitor the reaction on the chart to these results.
Update May 12, 2011: Here are the results. Now you have to monitor the reaction on the charts.
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.
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