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TSX candlestick chart analysis

Is this a Double Top Reversal for the S&P/TSX index?
Candlestick chart analysis for TSX

S&P/TSX 3-Month Daily Candlestick Chart

The most important points from the above chart of the S&P/TSX index are:

  • Major resistance is at 14,300 on the candlestick chart.
  • There is the possibility of a Double Top Reversal bearish pattern.
  • A  close below major support of 13,200 would confirm the Double Top Reversal.
  • Monitor support at 13,800 for the development of a consolidation pattern.
  • There is a major support level of 13,500 on the weekly candlestick chart.
  • Note the negative divergence with the MACD.

A neutral trading strategy is recommended — do not add to long positions — for Canadian stocks with alerts at the highlighted support levels.

Read this interesting article: Bull market quietly enters new phase.

Precision Drilling candlestick chart

Major resistance for Precision Drilling is $14.50
Precision Drilling three month candlestick chart showing a consolidation pattern

Precision Drilling (PD:TSX) 3-Month Daily Candlestick Chart

The most important points from the above chart for Precision Drilling are:

  • The chart is still in a uptrend.
  • There was no follow-through on the Tuesday sell-off.
  • Major resistance on this candlestick chart is $14.50.
  • Major support on the chart is $12.00.

You should maintain a neutral trading strategy at this stage with alerts at $14.00 and $13.00.  A close above $14.00 will indicate a possible attempt to break resistance at $14.50.  You could add to long positions with a close above $14.50 but this depends on the volume and other indicators at the time of the break.  A close below $13.00 would indicate a possible test of support at $12.00.  You would liquidate long positions if the stock closed below $12.00 with the next support test at $10.50.

You can reference the previous chart analysis for Precision Drilling.  Also visit the company website for fundamental data.

Reference  BigChart.com for the most recent one year daily chart.

Update for April 20, 2011: RBC raises Precision Drilling Corp price target to C$16 from C$12.50; rating outperform.

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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.

Candlestick chart analysis for Precision Drilling

Candlestick chart shows the uptrend for Precision Drilling
Two year weekly candlestick chart for Precision Drilling showing the uptrend over the last four weeks

Precision Drilling (PD:TSX) 2-Year Weekly Chart

Reference the previous weekly chart for Precision Drilling.  Also reference the chart analysis based on the daily candlestick chart.

The important point from this chart is that the stock is in an uptrend and you always trade in the direction of the trend. But, Precision Drilling is a little overextended as indicated by the height above the 50-day moving average so we could see a correction to support at $13.50.  If the stock broke $13.50, the next minor support level would be $13.00. Major support is at $12.00 which is near the  the 50-day moving simple moving average.

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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.

Precision Drilling (PD:TSX) uptrend – Daily Chart

Technical indicators are confirming the uptrend on the candlestick chart
Precision Drilling three month daily candlestick chart showing the uptrend with confirming indicators

Precision Drilling 3 Month Daily Chart

 

Reference the previous post of the weekly chart for Precision Drilling.

Input the advanced chart settings for BigCharts.com and view the current daily chart for Precision Drilling (PD:TSX).

Precision Drilling (PD:TSX) – Weekly Chart

Precision Drilling (PD:TSX) moving up on above average volume
Precision Drilling (PD:TSX) two-year weekly candlestick chart showing above average volume associated with the bullish white candlesticks.  The 50-day simple moving average defines the uptrend.

Precision Drilling (PD:TSX) 2-Year Weekly Candlestick Chart

Reference the previous post for Precision Drilling based on the  daily chart.

Other stocks featured on tradeonline.ca include: Dundee REIT, Encana, Suncor, RioCan REIT, BMO, Shoppers Drug Mart, Pfizer, BCE, and Patriot Coal.

Can the S&P 500 break 1,330?

Traders are focusing on key resistance at 1,330 for the S&P 500
Can the S&P 500 index break resistance on the candlestick chart at 1,330

S&P 500 Daily Candlestick Chart

The most important points from the above chart for the S&P 500 are:

  • Resistance levels exist on all stock charts.
  • The S&P 500 must break and hold above the 1,330 level on the candlestick chart.
  • The new support level will then be 1,330.
  • The reversal of resistance to support is an important concept in technical analysis.

Complete the advanced chart settings and then view the weekly chart for the S&P 500 on BigCharts.

Putting the March TSX correction in perspective

TSX decline to 13,200 represented a minimum retracement level of 34.4%

There are no firm rules when an index or stock retraces a prior move. The minimum retracement level would be 33%  and the maximum would be 66%.  If  the correction passes the 66% level, there is a high probability the stock or index will retrace the prior move.

Weekly candlestick chart of the TSX showing the March correction which represented a retracement of 34.3% of the  28.8% (3200 points) gain from the July low of 13,200 to the March 7 high of 14,300

S&P/TSX 1-Year Weekly Chart

The most important points for the above TSX chart analysis are:

  • The 50-day moving average is a good approximation of the trend line.
  • The major trend ( longer than six months) is up.
  • The intermediate trend ( three weeks to three months) is up.
  • The near-term trend ( less than three weeks) is now up.
  • The March correction was a 34.3% retracement of the July to March upswing.
  • The March correction was -7.7%.
  • The support level of  13,500 held on the pullback.

You can reference recent chart analysis of the S&P/TSX index to see where the index made an assault on the 13, 500 level.  Then there was the break and the run to the March high.

This two-year annotated candlestick chart of the TSX makes one statement: it was a good run.

Maintain a neutral trading strategy at this  juncture in the S&P/TSX index with alerts at the 14,200 and the 13,800 levels.  A  close above 14,200 would be a possible indicator to add to long positions as the index attempts a break through the recent high of 14,300.  A close below 13,800 would be a possible indicator to liquidate some long positions as you monitor major support at 13,500.

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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.

The trend is up for Dundee REIT (D.UN:TSX)

Dundee Real Estate Investment Trust

One of the most important principles in technical analysis is to trade in the direction of the trend: buy when the stock is trending up.  In other words, buy on strength and sell on weakness.

Candlestick chart for DUNDEE REIT (D.UN-TSX) showing support and resistance

DUNDEE REIT (D.UN-TSX) Three-Year Weekly Chart

The most important points for this Dundee REIT chart analysis are:

  • The major trend (in effect for at least six months) is up.
  • The intermediate trend (in effect for three weeks to three months) is up.
  • The near-term trend (in effect for two to three weeks) is up.
  • Major support is $30.
  • Dundee traded in a consolidation range of $30-$31 since November, 2010.
  • There is a tentative breakout at $32.  Will it hold?
  • A target price of $36 is reasonable based on the chart and fundamental data.

Dundee REIT owns high quality office properties across Canada. Review the fundamental data for Dundee REIT detailed on their website.  RioCan REIT,  the biggest Canadian REIT  listed on the TSX, was featured on this site March 8, 2011.

A Financial Post article with reference to Dundee REIT: Be picky in strong 2011 for Canadian REITs.

A Globe and Mail article with a positive reference for Dundee REIT and REITs in general: A healthy year of gains seen for REITs.

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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 stock in the featured company but is in no way associated with the company.

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