Category Archives: Stocks

Royal Bank of Canada – RBC – chart analysis

Two breakaway gaps on the candlestick chart for RBC
Royal Bank of Canada - RBC - candlestick chart analysis showing two breakaway gaps. The last gap appeared after the earnings release. The chart shows three simple moving averages. The intermediate trend is down and the near-term trend is up. The resistance level is $50.00. Three was above average volume for the last gap after the earnings release. The relative strength indicator known as RSI is confirming the near-term uptrend for the Royal Bank of Canada. RBC is traded on the Toronto stock exchange under the symbol (RY:TSX). This is the largest bank in Canada.

RBC Six-Month Daily Candlestick Chart Analysis

Reference two previous charts for RBC:

Key points from the above chart analysis are:

  • The intermediate trend (three weeks to six months) is still down.
  • The near-term trend (less than three weeks) is up.
  • RBC is trading above the three simple moving averages.
  • The 10-day SMA is crossing the 20-day SMA.
  • Volume is increasing with the near-term uptrend.
  • RSI is confirming the near-term uptrend.
  • Two breakaway gaps bode well for the uptrend.
  • The last gap (window) should provide support ($48) on any pullback.
  • The near-term resistance level is around $50.00.
  • You must take into account the trend for the overall market – TSX Index.
  • The intermediate trend for the TSX Index is down.

Conclusion

When you trade the markets, you are dealing with probabilities.  What is the probability of the the near-term uptrend continuing for RBC?

Relevant articles picked from the Web:

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The main purpose of TradeOnline.ca is a starting point for your own chart analysis. Technical analysis serves as a guidepost in your daily investment analysis and is used in conjunction with fundamental analysis. There is no magic formula for making profits when you trade online in the stock market. We are all students of the market, and one should never give up reviewing and learning the basics. Visit the Advanced Chart Settings and customize BigCharts so you can review different time periods.

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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: Royal Bank (RY:TSX)

RBC chart analysis showing a bullish shaven head candlestick
Six-Month daily candlestick chart for the Royal Bank showing a bullish shaven head candlestick.  Three simple moving averages (SMA) are identified on the chart.  The intermediate trend is down which is highlighted by the 40-day moving average.  Resistance is at $50.00 and support should be around the gap which is sometimes called a window.  On Balance Volume is shown on the chart analysis and aslo the Relative Strength Indicator (RSI).  The Royal Bank is the largest bank in Canada and is traded on the Toronto Stock Exchange with the symbol of RY.

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:

______________________________

The main purpose of TradeOnline.ca is a starting point for your own chart analysis. Technical analysis serves as a guidepost in your daily investment analysis and is used in conjunction with fundamental analysis. There is no magic formula for making profits when you trade online in the stock market. We are all students of the market, and one should never give up reviewing and learning the basics. Visit the Advanced Chart Settings and customize BigCharts so you can review different time periods.

______________________________

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) candlestick chart

Royal Bank of Canada chart analysis indicates a bottom
Candlestick chart analysis for the Royal Bank based on the weekly chart indicates a bottom with the RSI at an oversold level

Royal Bank (RY:TSX) Weekly Chart

The intermediate trend for RBC is sideways and the near-term trend is down. The $45.00 support level was tested in September, October and November: the support level has held. There is an old trading axiom that advises you to never try and catch a falling knife. But a small position at this level is a relatively low risk entry point as you monitor the chart for a breakout above resistance around the $50.00 level. A break below $45.00 would be a reason to liquidate the long positions.

Reference the last chart analysis for the Royal Bank of Canada based on the daily chart.

Review the fundamental data for RBC.

Relevant articles picked from the web:

______________________________

The main purpose of TradeOnline.ca is a starting point for your own chart analysis. Technical analysis serves as a guidepost in your daily investment analysis and is used in conjunction with fundamental analysis. There is no magic formula for making profits when you trade online in the stock market. We are all students of the market, and one should never give up reviewing and learning the basics. Visit the Advanced Chart Settings and customize BigCharts so you can review different time periods.

______________________________

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

Canadian Natural Resources (CNQ:TSX) chart analysis

Bullish white candlestick on the daily chart for CNQ
Candlestick chart analysis for Canadian Natural Resources (CNQ:TSX) showing a bullish white candlestick on the daily chart.  Major resistance is at $40.00 and confirming indicators of volume and rsi are identified in the chart analysis.

CNQ Daily Candlestick Chart

Candlestick chart analysis for Canadian Natural Resources showing a harami cross and a tweezers top. This could be a significant reversal indicator.

CNQ Chart for Nov 4, 2011

The above candlestick chart highlights the bullish candlestick for Thursday, Nov 3, 2011. I always look for follow-through after a tall bullish white candlestick. But you have to analyze individual company charts in the context of the overall market. And in this volatile market nimble traders will take profits on near-term gains. Major resistance of $40.00 is around the 200-day simple moving average which can be seen on a weekly chart.

The chart to the right is a snippet from the daily chart for Friday, Nov 4, 2011. The harami cross candlestick pattern in combination with a tweezers top could be an indicator of a reversal in the near-term uptrend. The bulls did on persevere on Friday.

Reference the last chart analysis for Canadian Natural Resources.

Reference the website for Canadian Natural Resources to review the fundamental data.

The main purpose of TradeOnline.ca is a starting point for your own analysis. Technical analysis serves as a guidepost in your daily investment analysis and is used in conjunction with fundamental analysis. There is no magic formula for making profits in the stock market. We are all students of the market, and one should never give up reviewing and learning the basics. Visit the Advanced Chart Settings and customize BigCharts so you can review different time periods.

______________________________

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

Precision Drilling (PD:TSX) chart analysis

Can Precision Drilling maintain the near-term uptrend?
Candlestick chart analysis for Precision Drilling (PD:TSX) showing the near-term uptrend  with support and resistance levels.

Precision Drilling Candlestick chart

Reference the last chart analysis for Precision Drilling.

Precision Drilling Corporation (“Precision”) intends to release its 2011 third quarter results
before the market opens on Friday, October 21, 2011 and has scheduled a conference call and
webcast to begin promptly at 12:00 Noon MT (2:00 p.m. ET) on the same day.

FP article dated Oct 21, 2011: Precision Drilling earnings surge 48%

Update Friday, Oct 21, 2011: Stock sold-off to the $11.00 level as indicated by a bearish engulfing pattern on the daily chart: sold into the news of the earnings release. Traders who bought the stock at the beginning of the month took profits on the gain from $8.00 to $12.00: a nice profit of 50%.

Update Monday, Oct 24, 2011: Precision Drilling closed at $11.87 today.  The stock pattern may indicate that it will ease into a lateral band between $11.00 and $12.00.  A close above the $12.00 resistance level for two days would be a sign to add to long positions with an intermediate target of $15.00.  If the stock cannot hold the $11.00 level, it would be a sign to liquidate longs.

Update Monday, Oct 31, 2011: Precision Drilling closed at $11.56 today. A tall bearish candlestick (daily candlestick chart) after two spinning tops is not a good omen. Another negative factor is the above average volume today on the sell-off. If the stock cannot hold support at $11.00, the next major test would be the 50% retracement level of around $10.00.

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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

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.