What was the reaction on the chart to the earnings release for BCE?
BCE Daily Candlestick Chart
It is very important to evaluate the reaction on the chart to a earnings release or company announcement: this is the only thing that counts.
What are the key points on the above chart?
- Tall bullish white candlestick in reaction to the results.
- Above average volume for the candlestick is confirming the uptrend.
- On Balance Volume (OBV) is confirming the move.
- Relative Strength Index (RSI) is confirming the move.
- RSI is overbought but this is normal on a fast upward move.
- $38.00 is near-term resistance
Based on the chart, I have an intermediate target of $40.00 for BCE. Investors are moving money into stable dividend paying utilities, and BCE has a very attractive yield.
Reference the previous chart analysis for BCE based on the daily chart. And reference the previous analysis based on the weekly chart.
View the quarterly results for BCE.
Relevant articles from the web:
- Globe Investor, July 21, 2011: Have BCE shares peaked?
- Financial Post, Nov 29, 2011: Conservatives put off changes to telecom foreign-ownership rules
- Financial Post, Dec 9, 2011: Rogers and BCE buy MLSE: The good and bad for investors