Author Archives: Trader

Dow Jones Industrial Average bar chart

All-time closing high and new support level for the DOW
Chart for the Dow Jones Industrial Average showing the all-time high and the new support level.

DJIA 1-Year Bar Chart

I have penciled in the the new support level of 16,600 for the Dow. This was the previous resistance level and the reversal of roles is an important concept in technical analysis. But always use time and percentage filters to confirm the breakout. On a time basis, if the Dow can hold above 16,600 for two days we have a new support level.

It was a strong day for the Dow in terms of the price action: closed near the high of the day.

On a volume basis, the volume was relatively low on the breakout. This could raise concerns because volume is the fuel that will drive the advance in an index or stock. But volume is not necessary to confirm a downtrend. A stock can fall with it own weight and relatively small volume.

I have concerns with the momentum indicators that I will elaborate on in another post.

As you can see, there is no sure thing in technical analysis. Just assigned probabilities.

Enjoy your trading day. If you don’t enjoy your avocation or vocation, then it is not worth doing.

Reference the last chart analysis for the Dow.

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“Keep it Simple”

Note: Click on HOME for updated postings. This technical analysis is for educational purposes so you can learn to trade online using candlestick charts and other technical indicators including volume, moving averages and oscillators. Please conduct your own chart analysis or consult your financial advisor before making investment decisions. The author of this article may hold long or short positions in the featured stock or index.

WTIC and Brent weekly chart

What are the main points from this chart?

Chart of WTIC and Brent and the correlation coefficient.

Brent Crude

West Texas Intermediate

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“Keep it Simple”

Note: Click on HOME for updated postings. This technical analysis is for educational purposes so you can learn to trade online using candlestick charts and other technical indicators including volume, moving averages and oscillators. Please conduct your own chart analysis or consult your financial advisor before making investment decisions. The author of this article may hold long or short positions in the featured stock or index.

Canadian Energy Sector versus U.S. Sector (2007-2014)

Canadian energy sector back on track

Canadian energy sector performance compared to U.S. energy sector performance.

This chart is simply the absolute performance of XEG ETF compared to the absolute performance of XLE ETF.

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Note: Click on HOME for updated postings. This technical analysis is for educational purposes so you can learn to trade online using candlestick charts and other technical indicators including volume, moving averages and oscillators. Please conduct your own chart analysis or consult your financial advisor before making investment decisions. The author of this article may hold long or short positions in the featured stock or index.

© 2014 TradeOnline.ca

WTI/ Brent chart (2011-2014)

Chart is the ratio of WTI/Brent

Chart showing the ratio of  West Texas Intermediate to Brent

Reference the same chart from last year.

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Note: Click on HOME for updated postings. This technical analysis is for educational purposes so you can learn to trade online using candlestick charts and other technical indicators including volume, moving averages and oscillators. Please conduct your own chart analysis or consult your financial advisor before making investment decisions. The author of this article may hold long or short positions in the featured stock or index.

© 2014 TradeOnline.ca

TSX Index chart analysis

Intermediate uptrend for the TSX Index

Intermediate uptrend for the TSX Index with major resistance at 15,000

Intermediate trend is up for the Canadian market with major resistance at the 2008 high of 15,154. I use the round number of 15,000 and will set my alerts at this point.

Reference the last chart analysis for the TSX Index showing the support levels. Note that the 14,500 level was a resistance point on this chart. It is now a support level. The reversal of roles is an important concept in technical analysis.

S&P/TSX Composite Index

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“Keep it Simple”

Note: Click on HOME for updated postings. This technical analysis is for educational purposes so you can learn to trade online using candlestick charts and other technical indicators including volume, moving averages and oscillators. Please conduct your own chart analysis or consult your financial advisor before making investment decisions. The author of this article may hold long or short positions in the featured stock or index.

Technical Analysis: Dow Jones Industrial Average

Near-term uptrend with major resistance at 16600

Near-term uptrend for Dow Jones Industrial Average with major resistance at 16600.

There are three trends: major trend, intermediate trend and near-term trend. The major trend is up, the intermediate trend is sideways and the near-term trend in up.

Note the divergence and downtrend for MACD.

Conclusion: the Dow Jones Industrial Index will meet heavy resistance at 16600. Always trade in the direction of the major trend but in this case a little caution is warranted.

______________________________

“Keep it Simple”

Note: Click on HOME for updated postings. This technical analysis is for educational purposes so you can learn to trade online using candlestick charts and other technical indicators including volume, moving averages and oscillators. Please conduct your own chart analysis or consult your financial advisor before making investment decisions. The author of this article may hold long or short positions in the featured stock or index.

U.S. Treasury 10 year Note Yield Chart (2010-2014)

The Goldilocks trading range of 2.60% to 3.00%
U.S. Treasury Note Yield Chart showing the intermediate trading range of 2.60% to 3.00%

U.S. Treasury 10 Year Note Yield Chart

A drop below 2.60% would indicate a run to safety with a corresponding decline in equities. A rise above 3.00% would indicate an improvement in the U.S. economy and an end to quantitative easing. This could also result in a decline in equities.

The price of the bond and the yield have an inverse relationship.

______________________________

“Keep it Simple”

Note: Click on HOME for updated postings. This technical analysis is for educational purposes so you can learn to trade online using candlestick charts and other technical indicators including volume, moving averages and oscillators. Please conduct your own chart analysis or consult your financial advisor before making investment decisions. The author of this article may hold long or short positions in the featured stock or index.