Bullish white candlestick on the weekly chart for Encana.
Encana Weekly Chart for March 18, 2011
The most important points on the Encana weekly chart are:
The major trend and intermediate trend are both sideways.
The near-term trend (less than three weeks) is up.
Major support is $28: liquidate longs if Encana breaks support.
Major resistance is $36: add to long positions if Encana breaks resistance.
Above average volume on the bullish white candlestick.
To trade online, you need a grasp of both technical and fundamental data. Natural gas the next ‘green hope written by Gwyn Morgan is an excellent article. After months of quiet negotiation, energy giant Encana Corp has agreed to buy a minority stake in a natural gas export project that is positioned to redraw Canada’s energy map.
Encana in the largest natural gas producer in Canada. Visit the Encana website to research the fundamental data on the company.
Weekly candlestick chart for the TSX index showing support at 13,500
The tsx index sold off last week as shown by the long dark candlestick and bounced off support at 13,500. The chart for this week shows the spinning top candlestick which is neutral and indicates uncertainty in the market. The positive point here is that the index is currently—as of the close on Wednesday—holding the support level.
TSX Two Year Weekly Candlestick Chart
The overall online trading strategy at this stage in the market is to raise the cash level in your portfolio and not add to your long positions. Some so-called value investors are adding to income producing stocks on the dips which include real estate investment trusts (REITs) and some of the financials. And the day traders will be trading the range of 13,500 and 14,000 in their online trading accounts: buy at support and sell near resistance.
Take a few minutes to customize BigCharts so you can view the above chart with the same settings on your computer. Take a look at the two-year annotated chart for the tsx index for a historical perspective of the market. This story from the National Post lists some of the fundamental data moving the markets.
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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.
Major support is now 13,500 for the TSX composite index.
1-Year Weekly Chart for the TSX Composite Index
From the July 5, 2010 low of 11,065; the index gained 29.5% to the March 7, 2011 high of 14,329. This has been a significant move over this eight month period. I usually look for reversal patterns to develop when the market has an intermediate move of 20%. The TSX is at an advanced stage in this intermediate swing and any technical evidence indicating a reversal must be taken seriously. In other words, the odds of a correction are much greater than the odds of an upward move.
Bearish engulfing candlestick pattern on the weekly chart.
Suncor 2-Year Weekly Chart
The previous post of the chart analysis for Suncor was based on the daily candlesticks. This analysis is based on the weekly chart and shows the same information from a different viewpoint. Current support is at the 40 to 50 day moving average with major support at $40. We do not want to see Suncor close below support at $40.00.
This is not the best looking chart over the two-year period: the major trend has been sideways.
Fundamental data for Suncor to complete your evaluation of this TSX listed stock.
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.
A confluence of negative technical indicators for Suncor on the daily chart.
Suncor 6-Month Daily Candlestick Chart
Major support for Suncor is at $40.00 on this daily candlestick chart. You must monitor the chart at this stage for a candlestick pattern that indicates the stock can hold this support level. The near-term trend is down: Suncor has moved below the 10 day and 20 day moving averages. Can the stock hold the 40 day moving average?
The trend is the most important concept in technical analysis.
You must always trade in the direction of the trend, and the major trend is up for RioCan Real Estate Investment Trust. All the real estate invest trusts (REITs) listed on the TSX have performed very well over the past two years.
What is the definition for the major trend? The three-year weekly candlestick chart is best for establishing the major trend (in effect for six months to a year) for a stock or an index. The major trend for RioCan is up with current resistance at $24.
3-Year Weekly Chart for Riocan
RioCan is the largest real estate investment trust in Canada and the liquidity makes this an attractive investment for institutional investors. It is worth taking a few minutes to review the profile for this company. Even if you focus on technical analysis to trade online, you need to have a basic understanding of fundamental analysis. Also, review the most recent quarterly results for RioCan.
Take a couple of minutes to input the advanced chart settings for BigCharts and then look at the this chart. You will have the advantage of viewing a larger chart and the ability to adjust the time period and other technical indicators. In a previous post, I presented an analysis of RioCan based on the 6-month daily candlestick chart and the reaction of the market to the release of the quarterly results. This analysis focused on the near-term and intermediate trend.
Visit Investment Talk with SPBrunner for an excellent review of the fundamental data for RioCan Real Estate Invest Trust.
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.
How did the market react to the Riocan quarterly results?
It does not matter what I think about the results and it does not matter what you think about the results. The only thing that counts is the market reaction: the candlestick chart shows graphically that the reaction was positive. The next question: what will be your reaction to these results?
6 Month Daily Chart for RioCan
Online trading strategy: RioCan (rei.un) yields 5.69% at the current price. The stock had a good run from a low of $11.50 in March, 2009 as both small investors and institutional players poured money into the REIT sector. When you are getting practically nothing on your money left in a bank account, these yields looked very attractive. And the current 2-year yield of 1.826% on Government of Canada Bonds is not exactly lucrative. Money is still flowing into the real estate investment trust sector. Yes, RioCan is still a buy at the $24 price level and the yield provides downside protection. RioCan has a monthly distribution of $0.1150 which equals an annual distribution of $1.38. I would be comfortable with a price target of $28 for this stock which equates to a yield of 4.93%.
RioCan Real Estate Investment Trust Announces Results for Fourth Quarter and Year Ended December 31, 2010. Link to the results and other excellent resources at TMX Money.
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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.
