Author Archives: Trader

TSX Index candlestick chart analysis

TSX Index in a lateral trading band

TSX Index candlestick chart analysis showing the support and resistance levels.  The relative strength indicator (RSI) is below 50 and trending down.

TSX Index Weekly Candlestick chart

Reference the last chart analysis for the TSX Index.

Interesting Financial Post article dated Oct 12, 2011: Energy stocks ‘discounting armageddon’

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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

Candlestick chart analysis for the S&P 500 Index

S&P 500 Index in a lateral trading band
Candlestick chart for the S&P 500 index showing support and resistance levels.  The index is trading in a lateral tranding band.

S&P 500 Index Weekly Candlestick Chart

Reference the last candlestick chart analysis for the S&P 500 Index.

Have you tried the advanced chart settings for BigCharts?

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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

Teck Resources (TCK.B:TSX) chart analysis

Is $30.00 the bottom for Teck Resources?
Candlestick chart analysis for Teck Resources showing major support

Teck Resources (TCK.B:TSX) Three-Year Weekly

 

Teck Resources daily candlestick chart showing a bullish engulfing pattern with above average volume

Teck Resources Daily Chart

The above weekly candlestick chart chart shows the major support level of $30.00 which appears to be holding.

The candlestick chart to the right shows the bullish engulfing pattern on a snippett from the daily chart. This pattern, especially with above average volume, is an early indicator that the downtrend has ended. And there was a positive follow-through on the chart today (Oct 5).

Reference the Teck Resources website for the quarterly reports.

Reference the current charts for copper.

Reference Globe article dated Sept 23, 2011: Teck to spend $685-million on B.C. operations

Reference Globe article dated Sept 23, 2011: Crumbling coal demand signals slowing Asian economy

Reference Globe article dated Sept 21, 2011: Rio Tinto warning rocks commodity stocks

Reference Globe article dated Nov 8, 2011: Financing for junior mining feels the pinch

Reference Globe article dated Nov 8, 2011: Teck keen to put its cash to work

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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 for the TSX index

Critical support levels for the TSX Index

Technical analysis for the TSX Index using a three year candlestick chart highlighting major support and resistance levels

TSX Index Three-Year Weekly Candlestick Chart

The support level of 11,000 to 10,900 is based on a Fibonacci Retracement of 50% of the move from the March, 2009 low of 7500 to the April, 2011 high of 14,300. And it is also near the July, 2010 low of 11,065. This is a major support level!

The final support level of 10,000 is based on a Fibonacci Retracement of 61.8% of the move from the March, 2009 low of 7500 to the April, 2011 high of 14,300.

Please reference the previous chart analysis for the TSX Index.

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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

Royal Bank (RY:TSX) chart analysis

Can the price close above the downward sloping trendline?
Royal Banks six-month candlestick chart analysis showing a downward sloping trendline indicated by the 40 day simple moving average.  Can the price break the trendline?

Royal Bank six-Month Candlestick Chart

Has the stock bottomed at the $44.00 level? In the above chart, the stock price for the Royal Bank declined 27% from an April high of $61.00 to a September low of $44.50 over a six month period. At this point, based on the extent of the decline (over 20%) and the time period (over six months), the odds increase that the stock has bottomed. Also, the low of $44.50 is a 50% retracement of the move from the February, 2009 low of $26.00 (view the 3-year weekly chart) to the high of $62.00 in May, 2010. Chart patterns that indicate a bottom take on more significance: it is all about having the odds in your favor. A candlestick pattern called a hammer is highlighted on the above chart. This pattern indicates a bottom and is followed by a bullish engulfing candlestick.

The key point for this chart analysis of the Royal Bank is that the price must make a significant close above the downward sloping trendline. This will be a confirming factor that the downtrend has ended: this applies to all stocks and indexes. My definition of significant is a 2% penetration of the trendline that holds for at least two days. This will indicate the start of a new uptrend or the start of a consolidation phase.

The next step is to monitor the confirming indicators of volume, on balance volume (OBV) and RSI. The volume should increase with the price move or the move is suspect. Volume measures the force behind the uptrend: an uptrend cannot be maintained without above average volume. The next confirming indicator is OBV and it must confirm the uptrend by trending higher. The last confirming indicator is RSI which must move above 50 and move in the direction of the uptrend.

It is always a good idea to have a grasp of the fundamentals for a company. The following is a summary of the bank earnings from Globe Investor: In order of reporting date, here is the final rundown for the latest earnings from the Canadian banks.

Please visit RBC Investor Relations for an overview of the fundamentals for this bank.

Globe and Mail article dated Oct 14, 2011: Hedge funds take aim at Canadian banks

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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.

Technical analysis of the TSX Index

There were many early indicators for the 19.6% correction in the TSX Index

Techncial analysis using a candlestick chart for the TSX Index

Where is the bottom for the TSX Index?

Reference my March 13, 2011 post: TSX at an advanced stage in this intermediate swing

Review the archive of my posts for more of the early indicators. Technical analysis is about risk management.

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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.

Technical analysis of the S&P 500 Index

Critical support level for the S&P Index at 1,100

S&P Index candlestick chart with support levels and a downward trend in the RSI

S&P 500 Index Three-Year Candlestick Chart

The S&P 500 Index is in an intermediate downtrend: cash is still king.

Reference the last analysis of the S&P 500 Index which was a more positive chart.

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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

US Bond 10 year yield chart

Has the 10 year yield hit bottom at 1.800%
US 10 year treasury not yield candlestick chart with RSI

US 10 Year Treasury Note Yield

Reference the last chart for the 10 year treasury note.

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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