Tag Archives: candlestick charts

Precision Drilling candlestick chart

Major resistance for Precision Drilling is $14.50
Precision Drilling three month candlestick chart showing a consolidation pattern

Precision Drilling (PD:TSX) 3-Month Daily Candlestick Chart

The most important points from the above chart for Precision Drilling are:

  • The chart is still in a uptrend.
  • There was no follow-through on the Tuesday sell-off.
  • Major resistance on this candlestick chart is $14.50.
  • Major support on the chart is $12.00.

You should maintain a neutral trading strategy at this stage with alerts at $14.00 and $13.00.  A close above $14.00 will indicate a possible attempt to break resistance at $14.50.  You could add to long positions with a close above $14.50 but this depends on the volume and other indicators at the time of the break.  A close below $13.00 would indicate a possible test of support at $12.00.  You would liquidate long positions if the stock closed below $12.00 with the next support test at $10.50.

You can reference the previous chart analysis for Precision Drilling.  Also visit the company website for fundamental data.

Reference  BigChart.com for the most recent one year daily chart.

Update for April 20, 2011: RBC raises Precision Drilling Corp price target to C$16 from C$12.50; rating outperform.

______________________________


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.

Candlestick chart analysis for Precision Drilling

Candlestick chart shows the uptrend for Precision Drilling
Two year weekly candlestick chart for Precision Drilling showing the uptrend over the last four weeks

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

Reference the previous weekly chart for Precision Drilling.  Also reference the chart analysis based on the daily candlestick chart.

The important point from this chart is that the stock is in an uptrend and you always trade in the direction of the trend. But, Precision Drilling is a little overextended as indicated by the height above the 50-day moving average so we could see a correction to support at $13.50.  If the stock broke $13.50, the next minor support level would be $13.00. Major support is at $12.00 which is near the  the 50-day moving simple moving average.

______________________________


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) uptrend – Daily Chart

Technical indicators are confirming the uptrend on the candlestick chart
Precision Drilling three month daily candlestick chart showing the uptrend with confirming indicators

Precision Drilling 3 Month Daily Chart

 

Reference the previous post of the weekly chart for Precision Drilling.

Input the advanced chart settings for BigCharts.com and view the current daily chart for Precision Drilling (PD:TSX).

Can the S&P 500 break 1,330?

Traders are focusing on key resistance at 1,330 for the S&P 500
Can the S&P 500 index break resistance on the candlestick chart at 1,330

S&P 500 Daily Candlestick Chart

The most important points from the above chart for the S&P 500 are:

  • Resistance levels exist on all stock charts.
  • The S&P 500 must break and hold above the 1,330 level on the candlestick chart.
  • The new support level will then be 1,330.
  • The reversal of resistance to support is an important concept in technical analysis.

Complete the advanced chart settings and then view the weekly chart for the S&P 500 on BigCharts.

Putting the March TSX correction in perspective

TSX decline to 13,200 represented a minimum retracement level of 34.4%

There are no firm rules when an index or stock retraces a prior move. The minimum retracement level would be 33%  and the maximum would be 66%.  If  the correction passes the 66% level, there is a high probability the stock or index will retrace the prior move.

Weekly candlestick chart of the TSX showing the March correction which represented a retracement of 34.3% of the  28.8% (3200 points) gain from the July low of 13,200 to the March 7 high of 14,300

S&P/TSX 1-Year Weekly Chart

The most important points for the above TSX chart analysis are:

  • The 50-day moving average is a good approximation of the trend line.
  • The major trend ( longer than six months) is up.
  • The intermediate trend ( three weeks to three months) is up.
  • The near-term trend ( less than three weeks) is now up.
  • The March correction was a 34.3% retracement of the July to March upswing.
  • The March correction was -7.7%.
  • The support level of  13,500 held on the pullback.

You can reference recent chart analysis of the S&P/TSX index to see where the index made an assault on the 13, 500 level.  Then there was the break and the run to the March high.

This two-year annotated candlestick chart of the TSX makes one statement: it was a good run.

Maintain a neutral trading strategy at this  juncture in the S&P/TSX index with alerts at the 14,200 and the 13,800 levels.  A  close above 14,200 would be a possible indicator to add to long positions as the index attempts a break through the recent high of 14,300.  A close below 13,800 would be a possible indicator to liquidate some long positions as you monitor major support at 13,500.

____________________________


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 breakout above $12 resistance level

Can Precision Drilling (PD) hold the new support level of $12?
Daily Candlestick chart for Precision Drilling showing the breakout above resistance at $12

Precision Drilling Daily Chart

The most important points to note in the Precision Drilling (PD) chart analysis are:

  • The major trend, intermediate trend and near-term trend are all up.
  • The 40 day moving average is a good approximation of the trend line.
  • Always trade in the direction of the trend.
  • There was a breakout above resistance of $12.
  • Major support is now $12.
  • The reversal of resistance to support is an important principle in technical analysis.
  • The breakout was on above average volume.
  • Trading volume measures the force behind the move.
  • On balance volume is confirming the upward trend.
  • The MACD confirmed the breakout.

If an online trader made a buy on the breakout at $12.50, the trader must set up a stop-loss at that time.  A reasonable stop-loss would be below support at $12.  A stop-loss of $11.87 would represent a loss of around 5% and maybe not close enough  that it would be taken out on a light test of support. Anyway, you will be around to trade another day.  Risk management is an important concept in online trading.  Preservation of capital is rule #1.

Precision Drilling is a leading provider of oilfield services.

Other stocks analyzed on this site include: Encana, SuncorRioCan, BMO, Shoppers Drug Mart, Pfizer, BCE and Patriot Coal.

Investors are seeking yield.  RioCan has been a favorite with institutional and individual Canadian investors.

Suncor candlestick chart analysis

Bearish engulfing candlestick pattern on the weekly chart.
Suncor weekly chart shows the bearish engulfing candlestick pattern with support at the 50 day moving average and major support at $40

Suncor 2-Year Weekly Chart

The previous post of the chart analysis for Suncor was based on the daily candlesticks.  This analysis is based on the weekly chart and shows the same information from a different viewpoint.  Current support is at the 40 to 50 day moving average with major support at $40.  We do not want to see Suncor close below support at $40.00.

This is not the best looking chart over the two-year period: the major trend has been sideways.

Fundamental data for Suncor to complete your evaluation of this TSX listed stock.

Some of the other Canadian stocks that have been featured include: Encana, Precision Drilling, Riocan, BMO, Shoppers Drug Mart, and  BCE.

____________________________


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.

Copyright © TradeOnline.ca All rights reserved

Positive market reaction to RioCan quarterly results

How did the market react to the Riocan quarterly results?

It does not matter what I think about the results and it does not matter what you think about the results.  The only thing that counts is the market reaction: the candlestick chart shows graphically that the reaction was positive. The next question: what will be your reaction to these results?

Six month daily candlestick chart for Riocan showing the raction ot the quarterly results

6 Month Daily Chart for RioCan

Online trading strategy: RioCan (rei.un) yields 5.69% at the current price.  The stock had a good run from a low of $11.50 in March, 2009 as both small investors and institutional players poured money into the REIT sector.  When you are getting practically nothing on your money left in a bank account, these yields looked very attractive.  And the current 2-year yield of 1.826% on Government of Canada Bonds is not exactly lucrative.  Money is still flowing into the real estate investment trust sector. Yes,  RioCan is still a buy at the $24 price level and the yield provides downside protection.  RioCan has a monthly distribution of $0.1150 which equals an annual distribution of $1.38.  I would be comfortable with a price target of $28 for this stock which equates to a yield of 4.93%.

RioCan Real Estate Investment Trust Announces Results for Fourth Quarter and Year Ended December 31, 2010. Link to the results and other excellent resources at TMX Money.

____________________________


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.

Copyright © TradeOnline.ca All rights reserved