What was the reaction on the chart to the earnings release for BCE?
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:
Two shaven head candlesticks bode well for the uptrend
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.
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 indicators are confirming the uptrend on the candlestick chart
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 Precision Drilling (PD) hold the new support level of $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, Suncor, RioCan, BMO, Shoppers Drug Mart, Pfizer, BCE and Patriot Coal.
Investors are seeking yield. RioCan has been a favorite with institutional and individual Canadian investors.
A confluence of negative technical indicators for Suncor on the daily chart.
Suncor 6-Month Daily Candlestick Chart
Major support for Suncor is at $40.00 on this daily candlestick chart. You must monitor the chart at this stage for a candlestick pattern that indicates the stock can hold this support level. The near-term trend is down: Suncor has moved below the 10 day and 20 day moving averages. Can the stock hold the 40 day moving average?
Please reference the the March 11, 2011 weekly chart of Suncor for another perspective.
The February 6, 2011 chart shows Suncor struggling at the $40 level which is now major support.
This 6-month daily candlestick chart for BMO reveals that the near-term trend is up and the intermediate trend is sideways.
BMO - 6-Month Daily Chart
The most important concept in technical analysis is the trend: you always trade in the direction of the trend. The near-term trend for BMO, last three weeks, is up and is defined by the 10 day simple moving average (SMA) which is above both the 20 day and 40 day averages. The intermediate trend, last six months, is sideways with support at $58 and resistance at $62.
This brings up the another important concept in technical analysis — support and resistance. Take a look at the chart. BMO could not break $62 on three attempts over the last six months. Both the bulls and the bears have memories of this price point. BMO will meet technical resistance at $62 in this rally.
The three confirming indicators:
- Volume is relatively light which is a negative indicator.
- On Balance Volume (OBV) is trending up with the move which is good.
- Relative Strength Index (RSI) is trending up which is good.
The shaven head ( stock closed at the high for the day) white candlestick for Thursday was positive for the bulls.
Bank of Montreal was last featured on tradeonline.ca on January 7, 2011
Note: This analysis is for educational purposes so you can learn to trade online using candlestick charts. Please conduct your own 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
Shoppers Drug Mart breaks technical resistance at $40 on this candlestick chart.
TradeOnline.ca featured Shoppers on February 6 and highlighted the first bullish white candlestick that developed on above average volume. Above average volume is a confirming indicator and is the fuel that drives the upward trend. The $40 level is now support and the stock must hold above this point for the trend to continue.
Shoppers Drug Mart (SC) 6-Month Daily
Shoppers Drug Mart will meet heavy resistance at $42. You can identify this point on the 3-year weekly chart.
Shoppers was upgraded from hold to buy on February 11 and the price target was raised to $43 from $39.
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