Author Archives: Trader

Key points to monitor on the TSX Index daily chart

TSX Index in a lateral trading band
TSX Index chart analysis showing key support and resistance levels.

TSX Index Daily Chart

Yes, the TSX Index has a negative technical profile. The intermediate trend is sideways as identified on the above daily candlestick chart. A confirmed break below 12,300 would be a warning to liquidate long positions.

Think about the major sectors in the TSX Index. The materials sector has a negative technical profile. The energy sector has a negative technical profile. Investors are taking money out of the hot REIT sector as rates slowly rise and on the news of subpar Canadian economic indicators. And the utilities are priced to perfection. And the two major telecos — BCE and Telus — had a nice run and are also priced to perfection.  What is left? Some bank stocks like RBC moved upward over the past four months and the Lifecos are coming back from the dead but are still on life support.

Caution is advised especially with the news coming out of China about the actual or perceived slowdown.

Reference the last chart analysis of the TSX Index based on the weekly chart. This is a three year chart with the the 50 day, 100 day and 200 day simple moving averages. The TSX Index is holding just above the 200 day moving average. You will see the golden cross (50 day crossed above the 200 day) on this longer term chart but the the cross is a little tarnished at this stage.

Notice the similarities with the daily chart for copper? Yes, we are a resource based economy.

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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.

© 2012 TradeOnline.ca

Technical Analysis: Copper

Key support and resistance levels for copper
Technical analysis for copper using the one year chart.  Copper is trading in an intermediate lateral trading band.  Key support and resistance levels are identified on the chart analysis.

One Year Chart for Copper

DR. Copper has a PhD in economics and is known to predict the economic turning points better than any economist. I have identified the key points to monitor on the copper chart which is currently in a consolidation range. You will have to make the appropriate trading decisions when the chart breaks to the upside or downside. Dr. Copper is still evaluating the data and a decision is pending.

Reference the last chart analysis posted October 20, 2012 when $3.00 was identified as the major support level.

View Kitco for updated charts and other time periods.

Relevant articles picked from the Web:

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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.

© 2012 TradeOnline.ca

U.S. Treasury 10-year note chart analysis

Major resistance for the 10-year note is 2.40%
Near-term uptrend for the 10-year treasury with major resistance at 2.40%.  The new support level is 2.10% and the intermediate trend is sideways.

US Treasury 10-Year Yield Weekly Chart

U.S. Treasury 10-year note has been trading in an intermediate lateral band of 1.80% to 2.10% for the past six months. The reversal of roles is an important concept in technical analysis and the old resistance level of 2.1% is now the new support level. Can the index breakout above 2.4% which is a major resistance level that was tested last October? Or will the TNX ease into another lateral trading band with 2.10% as the new support level?

Reference the last chart analysis for the 10-year treasury based on the weekly chart when it was unable to break the resistance level of 2.40% last October.

“Unless you want to earn an inflation adjusted return of minus 2-3% as offered by Treasury bills, then you must take risk in some form.” Bill Gross

Relevant articles picked from the Web:

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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.

© 2012 TradeOnline.ca

Great-West Life (GWO:TSX) candlestick chart analysis

Another breakout for Great-West Life on the daily chart
Another breakout for  Great-West Life on the daily candlestick chart.  RSI is confirming the uptrend.

Great-West Life Candlestick Chart

The Lifecos are having a good run as the bond yields increase and the US indexes advance. Combine this with an above average dividend yield and the rally may continue. Great-West Life, Power Financial, Manulife and Sun Life are all moving to the upside.

Reference the Great-West Life website to review the fundamental data for the company.

Reference my last chart analysis for the TSX Index which is currently struggling in a consolidation range due to the energy and materials components.

“If rates drop 100 bps, Great-West would see its core earnings drop an estimated 9%, compared with 33% for Manulife and 45% for Sun Life. As a result, Mr. Aiken prefers Great-West Life based on its smaller exposure to interest rates.”

Relevant articles picked from the Web:

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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.

© 2012 TradeOnline.ca

PetroBakken Energy (PBN:TSX) chart analysis

Breakout for PetroBakken Energy on the daily chart
PetroBakken Energy candlestick chart analysis showing the morning star candlestick pattern.  Two bullish white candlesticks confirmed a breakout at $17.00.  Volume, On Balance Volume and the Relative Strength Indicator are confirming the uptrend.

PetroBakken Energy (PBN:TSX) Candlestick Chart

PetroBakken Energy (PBN:TSX) candlestick chart analysis showing the morning doji star candlestick pattern. And a bullish white candlesticks gaps away from the previous white candlestick with a confirmed breakout at $17.00. Volume, On Balance Volume (OBV) and the Relative Strength Indicator (RSI) are confirming the uptrend.

The morning doji star is a major reversal pattern which called an end to the near-term downtrend that started on February 23. It is comprised of three candlesticks. The first candlestick is the dark tall bearish candlestick that appeared on March 5. The bears were in control at this stage but the volume was relatively light. Then on March 6, a gap appears with a doji (narrow or the same opening and closing) which is the second part of the pattern. Then on March 7, there is another gap and a tall white candlestick associated with above average volume. The reversal pattern is now completed. This particular morning star formation is rare and would be properly called an abandoned baby. It has two gaps where there is no overlap of the shadows.

You must always be cognizant of the fundamental news for a company and the reaction on the chart. View the following release for the details: PetroBakken Energy Ltd. is pleased to announce our fourth quarter and year-end 2011 financial and operating results.

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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.

© 2011 TradeOnline.ca

Technical Analysis: TSX Index candlestick chart

Harami candlestick pattern for the TSX Index
Harami candlestick pattern on the weekly chart of the TSX Index indicates caution. Monitor support at 12,500.  A confirmed break below support would be a reason to liquidate selected long position.

TSX Index 3 year Weekly Candlestick Chart

I start each trading week with an analysis of the major US and Canadian indexes. A three year weekly candlestick chart is my tool of choice. Three simple moving averages (50 day, 100 day and 200 day) are used to monitor the trend and any crossovers. Volume, On Balance Volume (OBV) and Relative Strength Index (RSI) are used as confirming indicators and to spot divergence.

The harami candlestick pattern identified on the above chart of the TSX Index is similar to the Western inside day. This is not a major reversal pattern but caution is advised. The TSX Index may move into a consolidation range between support and resistance. But a break below support of 12,500 would be reason enough to liquidate selected long position.

Reference last weeks analysis of the TSX Index which highlighted the confirmed breakout above resistance of 12,500.

Relevant articles picked from the Web:

______________________________

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.

© 2011 TradeOnline.ca

RBC Royal Bank (RY:TSX) chart analysis

Confirmed breakout for RBC at $55.00
RBC Royal Bank chart analysis based on the daily candlestick chart showing the breakout at $55.00.  Above average volume and on balance volume are confirming the breakout.

RBC Royal Bank Daily Candlestick chart

The reversal of roles is an important concept in technical analysis: $55.00 was resistance and it is now the new support level.

Reference previous charts for RBC Royal Bank:

Review the RBC Royal Bank website for the fundamental data..

Relevant articles picked from the Web:

______________________________

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.

© 2011 TradeOnline.ca