RBC chart analysis showing a bullish shaven head candlestick

Royal Bank (RY:TSX) Candlestick Chart

Reference the last chart analysis for the Royal Bank of Canada based on the weekly candlestick chart: Royal Bank chart analysis indicates a bottom

The key points from the above chart analysis of the Royal Bank are:

• Will there be follow-through in buying after the bullish shaven head candlestick?
• What will be the reaction on the chart to the earnings release this Friday?
• The intermediate trend is still down for RBC.
• The overall market action for the TSX Index must be taken into account.
• The intermediate trend for the TSX Index is still down.
• The gap (window) will act as support on any pullback.
• Major resistance level for RBC is around $50.00 on both the daily and weekly chart.
• There must be above average volume to sustain the near-term uptrend.
• The Relative Strength Indicator (RSI) is confirming the near-term uptrend.

Relevant articles picked from the Web:

•  Concern over Canadian bank exposure to overleveraged consumers Financial Post, Nov 30, 2011
•  TD, CIBC post higher profits Financial Post, Dec 1, 2011
•  Canadian banks shine amid darkening clouds Financial Post, Dec 1, 2011
•  Royal Bank of Canada profit beats estimates Reuters, Dec 2, 2011
•  How RBC holds a margin over its rivals Globe and Mail, Dec 2, 2011
•  RBC sees opportunity in euro crisis Financial Post, Dec 2, 2011
•  Canada’s banks lending more for less as capital markets profits pinched  Globe and Mail, Dec 2, 2011
•  Banks can’t please fickle Street Financial Post, Dec 6, 2011
•  Desjardins downgrades Bank of Montreal Globe and Mail, Dec 7, 2011
•  TD only Big Six bank yielding below 4 per cent Globe and Mail, Dec 7, 2011
•  Royal Bank of Canada and Bank of Montreal led four Canadian lenders in trimming 1,362 jobs Financial Post, Dec 9, 2011

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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.

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