Two breakaway gaps on the candlestick chart for RBC
Reference two previous charts for RBC:
- RBC chart analysis showing a bullish shaven head candlestick — Posted Dec 1, 2011
- Royal Bank of Canada chart analysis indicates a bottom — Posted Nov 12, 2011:
Key points from the above chart analysis are:
- The intermediate trend (three weeks to six months) is still down.
- The near-term trend (less than three weeks) is up.
- RBC is trading above the three simple moving averages.
- The 10-day SMA is crossing the 20-day SMA.
- Volume is increasing with the near-term uptrend.
- RSI is confirming the near-term uptrend.
- Two breakaway gaps bode well for the uptrend.
- The last gap (window) should provide support ($48) on any pullback.
- The near-term resistance level is around $50.00.
- You must take into account the trend for the overall market – TSX Index.
- The intermediate trend for the TSX Index is down.
When you trade the markets, you are dealing with probabilities. What is the probability of the the near-term uptrend continuing for RBC?
Relevant articles picked from the Web:
- Cost cuts, possible share buybacks for Canadian banks in 2012: analyst — Financial Post, Dec 16, 2011
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