Tag Archives: candlestick charts

BCE analysis based on the daily candlestick chart

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Two shaven head candlesticks bode well for the uptrend
BCE daily candlestick analysis showing two shaven head candlesticks with confirming indicaors of volume, OBV and MACD

BCE Six-Month Daily Candlestick Chart Analysis

Updated BCE chart analysis published August 3, 2012

Some key points from the above daily chart are:

  • A bullish shaven head (closes on the high) candlestick has closed above resistance of $36.75.
  • The near-term trend is up as indicated by the two bullish candlesticks.
  • On Balance Volume (OBV) is confirming the near-term uptrend.
  • The MACD is confirming the near-term uptrend.
  • Volume is ok but a little light for the two bullish candlesticks.

I use the above analysis as one of the inputs for a derivative trading strategy. Derivatives will not be reviewed in this post.

Reference the previous analysis of BCE based on the weekly chart.

BCE  will release quarterly results on Thursday, May 12, 2011.  It is important to monitor the reaction on the chart to these results.

Update May 12, 2011:  Here are the results.  Now you have to monitor the reaction on the charts.

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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

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What is the downside risk for the TSX Index?
Candlestick chart analysis for the tsx index showing the downside risk based on the double top and retracement levels.

2-Year Candlestick Chart of the TSX Index

What are the key points from the above chart of the TSX?

  • There is the possibility of a double top at 14,300.
  • Major support on the weekly chart is 13,500. Reference the previous chart.
  • I use a two-day time filter and a 2% penetration rule based on the closing prices.
  • 13,500 will become resistance if the TSX closes below 13,500 using the above filters.
  • 13,200 (near the March 7 retracement of 13,250) would then become major support.
  • Using the above filters, a closing price of around 12,900 would confirm a double top.
  • The downside risk would then be around 12,200.

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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 of the TSX Index

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TSX Index in consolidation mode
Three year candlestick chart analysis of the tsx index showing support and resistance so you can trade online using these indicators to make your online trading decisions.

3-Year Chart of the TSX Index

Reference last weeks analysis which was also a consolidation story for the TSX Index. This is in stark contrast to the S&P 500 Index and the Nasdaq Composite Index which are in an uptrend.

Also reference the most recent analysis of the TSX  based on the daily candlestick chart which identified the possibility of  a double top.

When trading online, you always deal in probabilities.  And the probability of a downside correction is greater than an upside breakout.  It has been a good run for the TSX  Index.

Read the National Post article: Now’s the time to diversify away from Canada.

TSX candlestick chart analysis

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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.