Tag Archives: OBV

BCE (BCE:TSX) chart analysis

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Chart for BCE tells the story: Trade in the direction of the trend
BCE candlestick chart analysis showing a major uptrend, a intermediate uptrend and an near-term uptrend. On balance volume is confirming the uptrend along with volume and RSI.

BCE (BCE:TSX) Weekly chart

The #1 rule of technical analysis is to always trade in the direction of the trend. And the chart for BCE is a good example why this is a profitable strategy: Just jump aboard the train and enjoy the ride.

Reference the last chart analysis for BCE posted on May 13, 2011.

Relevant articles picked 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

Technical Analysis: Royal Bank (RY:TSX)

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RBC chart analysis showing a bullish shaven head candlestick
Six-Month daily candlestick chart for the Royal Bank showing a bullish shaven head candlestick. Three simple moving averages (SMA) are identified on the chart. The intermediate trend is down which is highlighted by the 40-day moving average. Resistance is at $50.00 and support should be around the gap which is sometimes called a window. On Balance Volume is shown on the chart analysis and aslo the Relative Strength Indicator (RSI). The Royal Bank is the largest bank in Canada and is traded on the Toronto Stock Exchange with the symbol of RY.

Royal Bank (RY:TSX) Candlestick Chart

Reference the last chart analysis for the Royal Bank of Canada based on the weekly candlestick chart: Royal Bank chart analysis indicates a bottom

The key points from the above chart analysis of the Royal Bank are:

  • Will there be follow-through in buying after the bullish shaven head candlestick?
  • What will be the reaction on the chart to the earnings release this Friday?
  • The intermediate trend is still down for RBC.
  • The overall market action for the TSX Index must be taken into account.
  • The intermediate trend for the TSX Index is still down.
  • The gap (window) will act as support on any pullback.
  • Major resistance level for RBC is around $50.00 on both the daily and weekly chart.
  • There must be above average volume to sustain the near-term uptrend.
  • The Relative Strength Indicator (RSI) is confirming the near-term uptrend.

Relevant articles picked from the Web:

______________________________

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.

______________________________

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

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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.

Shoppers Drug Mart (SC:TSX) chart analysis

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Bullish Engulfing Pattern on the daily chart
Shoppers Drug Mart six month daily candlestick chart showing a bullish engulfing pattern with confirming indicators of volume and RSI. Support and resistance levels are identified in this chart analysis.

Shoppers Drug Mart (SC:TSX) Candlestick Chart

The bullish engulfing pattern indicates a near-term target of $42.00 which is major resistance. Shoppers Drug Mart had a positive day in a down market which is always a bullish indicator.

Reference the previous analysis of Shoppers Drug Mart. You can also search this site using “Shoppers Drug Mart” to review all the historical charts for this company.

Technical analysis is a guidepost and is open to interpretation by different analyst. What is your interpretation of the chart for Shoppers?

Based on a recent study by Morningstar, what country has the world’s highest mutual fund costs? Bet you already knew that answer. Also, what country has the highest banking fees? You can research the answer online using Google.

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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) chart analysis

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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.

Candlestick chart analysis for BCE

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What was the reaction on the chart to the earnings release for BCE?
BCE chart analysis based on the daily chart showing the reaction to the earnings release with confirming indicators of volume, OBV and RSI.

BCE Daily Candlestick Chart

It is very important to evaluate the reaction on the chart to a earnings release or company announcement: this is the only thing that counts.

What are the key points on the above chart?

  • Tall bullish white candlestick in reaction to the results.
  • Above average volume for the candlestick is confirming the uptrend.
  • On Balance Volume (OBV) is confirming the move.
  • Relative Strength Index (RSI) is confirming the move.
  • RSI is overbought but this is normal on a fast upward move.
  • $38.00 is near-term resistance

Based on the chart, I have an intermediate target of $40.00 for BCE. Investors are moving money into stable dividend paying utilities, and BCE has a very attractive yield.

Reference the previous chart analysis for BCE based on the daily chart. And reference the previous analysis based on the weekly chart.

View the quarterly results for BCE.

Relevant articles from the web:

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