What was the reaction on the chart to the earnings release for BCE?
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.
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