Category Archives: Stocks

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.

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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

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.

Shoppers Drug Mart (SC:TSX) chart analysis

Bullish Engulfing Pattern on the daily chart
Shoppers Drug Mart six month daily candlestick chart showing a bullish engulfing pattern with confirming indicators of volume and RSI.  Support and resistance levels are identified in this chart analysis.

Shoppers Drug Mart (SC:TSX) Candlestick Chart

The bullish engulfing pattern indicates a near-term target of $42.00 which is major resistance. Shoppers Drug Mart had a positive day in a down market which is always a bullish indicator.

Reference the previous analysis of Shoppers Drug Mart. You can also search this site using “Shoppers Drug Mart” to review all the historical charts for this company.

Technical analysis is a guidepost and is open to interpretation by different analyst. What is your interpretation of the chart for Shoppers?

Based on a recent study by Morningstar, what country has the world’s highest mutual fund costs? Bet you already knew that answer. Also, what country has the highest banking fees? You can research the answer online using Google.

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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) chart

Bullish Engulfing Pattern on the daily candlestick chart

Precision Drilling chart analysis showing the bullish engulfing pattern

Precision Drilling Candlestick Cahrt

You can see from the chart that the $12.00 level provided support in the recent sell-off.  The bullish engulfing candlestick pattern confirmed the bottom with above-average volume. You now have a stop-loss point at the major support level of $12.00 and you have near-term and intermediate targets.

Precision Drilling is a stock that can be traded and is in a near-term uptrend.

Reference the previous analysis for Precision Drilling.

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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) chart analysis

Bullish white candlestick closes above resistance

Candlestick chart analysis for Precision Drilling showing a bullish white candlestick on above average volume and the confirming indicators of OBV and MACD.

Precision Drilling (PD:TSX) Six-Month Chart

Reference the previous analysis for Precision Drilling.

Precision Drilling Corporation 2011 Second Quarter Results Conference Call and Webcast.

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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.