Tag Archives: MACD

TSX Index candlestick chart analysis

TSX Index must hold support zone or it will test 11,800
TSX Index in a near-term downtrend and must hold the support zone or it will test 11,800.

TSX Index Daily Candlestick Chart

The last chart analysis for the TSX Index showed it stuck in a lateral trading band with support at 12,600 and resistance at 12,900. That all ended on Wednesday in a big way when the tall dark candlestick crashed through two support levels: 12,600 and 12,500. The trading action today confirmed the near-term downtrend with an open and close below the close for the ominous tall dark candlestick.

The TSX Index now has a new major resistance level of 12,500 (reversal of roles) which was a prior major support level.

The support zone is based on three points:

  1. A 50% retracement of the November intermediate move which would be 12,350
  2. The 200 day moving average at 12,269
  3. The old support level of 12,200

If the TSX Index cannot hold the support zone, there is a high probability of a test of the November low around 11,800.

If you read my previous posts, this surprise drop on Wednesday should come as no surprise. Material and oil related stocks, which represent 45% of the TSX Index, have performed very poorly. Reference a recent post on Dr. Copper.

U.S. Jobs Report will move the market on Friday: most likely to the downside.

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Note: Click on HOME for updated postings. This technical analysis is for educational purposes so you can learn to trade online using candlestick charts and other technical indicators including volume, moving averages and oscillators. Please conduct your own chart analysis or consult your financial advisor before making investment decisions. The author of this article may hold long or short positions in the featured stock or index.

© 2013 TradeOnline.ca

TSX Index candlestick chart analysis

TSX Index is struggling at resistance of 12,200
TSX Index candlestick chart analysis showing the index struggling to break resistance of 12,200

TSX Index 6-Month Daily Candlestick Chart

What can I prognosticate from the above chart? As I have said in the past, it is not a pretty picture for the TSX Index: a gain this year of 0% compared to a gain of 12% for the S&P 500 Index. And a three year gain of 6.7% for the TSX Index compared to gain of 28.9% for the S&P 500 Index.

If the TSX Index can break resistance of 12,200 then it moves into the old trading range with resistance at 12,500. A resolution of the so-called fiscal cliff would be the fundamental news to give a lift for the TSX as traders would move into some of the risk-on trades: oil and materials. But, you have the Eurozone slipping into a recession, tepid growth in the BRIC countries, Iran, and crude price differentials for Canadian producers. And these are just some of the known knowns.

The experts will give you their expert projections for the major indexes. In the end, all you can do is follow the charts when you trade online. Use tight stops on any breakout positions. And, a comfortable cash position will let you have a comfortable sleep. On Friday, the U.S.employment report will move the markets.

Reference my last chart analysis for the TSX Index posted on November 27, 2012.

Relevant articles picked from the Web:

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Note: The above chart analysis is valid as of the publication date. To review current charts click on Home or perform a search. 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

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.

BCE analysis based on the daily candlestick chart

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 candlestick chart analysis

Is this a Double Top Reversal for the S&P/TSX index?
Candlestick chart analysis for TSX

S&P/TSX 3-Month Daily Candlestick Chart

The most important points from the above chart of the S&P/TSX index are:

  • Major resistance is at 14,300 on the candlestick chart.
  • There is the possibility of a Double Top Reversal bearish pattern.
  • A  close below major support of 13,200 would confirm the Double Top Reversal.
  • Monitor support at 13,800 for the development of a consolidation pattern.
  • There is a major support level of 13,500 on the weekly candlestick chart.
  • Note the negative divergence with the MACD.

A neutral trading strategy is recommended — do not add to long positions — for Canadian stocks with alerts at the highlighted support levels.

Read this interesting article: Bull market quietly enters new phase.