Tag Archives: candlestick charts

VIX – CBOE Volatility Index – chart analysis

Showing a little fear: Near-term uptrend for the VIX
Near-term uptrend on the weekly chart for the VIX.

VIX Weekly Chart

The resistance level for the VIX is 20.

Reference the last chart analysis for the VIX posted on March 23, 2012

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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.

© 2012 TradeOnline.ca

TSX Index chart analysis

Can the TSX Index break the resistance level of 12,500?

Candlestick chart analysis for the TSX Index showing support and resistance levels.  Can the TSX Index break the resistance level of 12,500?  RSI is confirming the intermediate downtrend.

TSX Index Weekly Candlestick chart

Reference the recent chart analyses for the TSX Index:

What are the critical support levels for the TX Index?

Relevant articles 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

US Bond 10-year yield candlestick chart

Support and resistance levels
Candlestick chart analysis of the US 10 year treasury note yield showing support and resistance levels

US 10 Year Treasury Note Yield

The intermediate trend is down and the near-term trend is up.

At this stage in the market, there is a direct correlation between the the major stock indexes and the 10-year treasury yield. Bearish sentiment is reflected in falling yields as investors move into the relative safety of government bonds.

Reference the last analysis for the US Bond 10 year yield.

Relevant article picked from the Web:

What is the bond market telling us? — Financial Post — Jan 12, 2012

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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

Candlestick chart analysis for the S&P 500 Index

S&P 500 Index in a lateral trading band
Candlestick chart for the S&P 500 index showing support and resistance levels.  The index is trading in a lateral tranding band.

S&P 500 Index Weekly Candlestick Chart

Reference the last candlestick chart analysis for the S&P 500 Index.

Have you tried the advanced chart settings for BigCharts?

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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.

US Bond 10 year yield chart

Has the 10 year yield hit bottom at 1.800%
US 10 year treasury not yield candlestick chart with RSI

US 10 Year Treasury Note Yield

Reference the last chart for the 10 year treasury note.

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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

TSX Index candlestick chart analysis

Spinning Top candlestick for the TSX Index
TSX index candlestick chart showing support and resistance with a spinning top candlestick in a lateral trading band

TSX Index Three-Year Weekly Candlestick Chart

The intermediate trend is down and the near-term trend is sideways: cash is king at this stage in the market. I am monitoring the support and resistance levels as indicated in the above chart. A break below the support level of 12,000 would be an indication to liquidate more of your long positions.

Reference the last chart analysis for the TSX index.

Reference this chart if the TSX Index cannot hold support at 12,000: What is the downside risk for the TSX?

Interesting Financial Post article: The period of seasonal strength in the technology sector is approaching. What can investors expect this year?

What do you think of this article from the Globe and Mail: Sideways market can bring decent returns.

Sept 23, 2011 article, MarketWatch: Copper, coal: crystal balls for the global economy Commodities show gloomy outlook, but are worth a closer look.

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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.

US Bond 10 year yield candlestick chart

Record low: Not a good omen for the near-term trend in equities
Candlestick chart showing the yield for the 10 year US Government Bond at a low of 1.915%

US Government Bond 10 Year Yield Weekly Candlestick Chart

The 10-year Treasury bond is one of the most widely watched securities as it sets the benchmark for almost every other interest rate in the U.S. economy, from the cost of financing corporate debt and mortgages to credit card balances.

This chart does not show any confidence in the near-term growth prospects for the US economy. Nor does it show any confidence in the ability or will of the EEC to solve the Greek debt crisis.

Read this story in the September 12, 2011 edition of the Financial Post:Treasury 10-year yield falls to record low on Europe debt crisis

View my candlestick chart analysis on the downside risk for the TSX Index.

Read this story in the September 16, 2011 edition of the Financial Post: Reading the U.S. treasury yield signs

What do you think of this story from Bloomberg News? S&P 500 may plunge 21%: Technical analyst. You can review my post from June 25, 2011: Can the S&P 500 Index hold the 200-day moving average?

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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