Tag Archives: Bullish Engulfing Pattern

S&P 500 Index candlestick chart analysis

Bullish Engulfing Patterns: Size Counts

Three-year candlestick chart analysis for the S&P 500 Index based on the weekly chart and showing bullish engulfing candlestick patterns

S&P 500 Index Three-Year Weekly Candlestick Chart

There is a high probability that the  S&P 500 Index will test major resistance of 1,370 within the next two weeks. Using the 2% rule, a convincing close of 1,400 for two consecutive days would set-up the index for an upside target of 1,470.

A failed low-volume test of resistance would see the S&P 500 index move into a trading range of  1,350-1,250. And then we will be back to monitoring the major support level of 1,250.

 

Reference the previous analysis of the S&P 500 Index using candlesticks

Precision Drilling technical analysis

Precision Drilling (PD:TSX) candlestick chart with a bullish engulfing pattern
Candlestick chart analysis showing a bullish engulfing pattern on the weekly chart with confirming volume.

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

Reference the previous chart analysis for Precision Drilling.

Precision Drilling Corporation (“Precision”) intends to release its 2011 first quarter results before the market opens on Tuesday, April 26, 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.  Analysts expect earnings of 26 cents a share.

April 26, 2011 Update: The Calgary-based concern on Tuesday posted net earnings of $66 million, or 23 cents per share, for the three months ended March 31. That compared with net earnings of $57 million, or 20 cents per share, in the first quarter of 2010.

Candlestick chart for Precision Drilling showing a doji candlestick pattern in reaction to the first quarter results

(PD:TSX) 1-Month Daily

What will be the reaction on the chart to the first quarter results?  That is all that counts.

A doji candlestick (opens and closes at or very near the same level) formed on the daily chart at the end of trading for Tuesday, April 26, 2011. This was the reaction of the market to the first quarter results. It represents indecision and a battle between the bulls and the bears. Considering the recent run-up in the stock price,  the fact that Precision Drilling stock did not sell off on the earnings miss is a positive reaction on the chart. Set alerts at $15.00 and $14.00 and monitor for the development of a consolidation pattern.
Doji candlestick with the opening and closing price at the same level
The doji candlestick has the same opening and closing price.  In the Precision Drilling chart to the right, the doji is part of a consolidation pattern. But, the doji is an important candlestick especially for indicating tops.  As in all technical analysis, you have to look at the total picture before making a decision based on one candlestick formation.  Always look at the price action the next day to corroborate any pricing pattern.

TSX candlestick chart analysis

Can the S&P/TSX index break resistance of 14,300?
Three year candlestick analysis of the weekly chart for the tsx index showing volume, support and resistance levels.

TSX 3-Year Weekly Candlestick Chart

What are the key points to note on this  chart of the TSX index?

  1. Major resistance on the candlestick chart is 14, 300.
  2. The index could not close above 14,300 on two attempts.
  3. Is this the start of a double top formation on the weekly chart?
  4. Support on the weekly chart for the TSX is 13,500.
  5. Is the index moving into a consolidation pattern?
  6. Notice how the bullish engulfing pattern signaled the start of the uptrend in March, 2009.
  7. Did you board the train in March, 2009?  I was aboard with rest stops along the way.
  8. Candlestick chart formations indicated where you could disembark the train for rest stops.
  9. The bullish piercing pattern in July, 2010  indicated that the train was leaving the station again.
  10. Now, the train is at the station.  When will it leave?  And, in what direction?

Reference the previous chart analysis of the TSX index.

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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) – 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.

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