Candlestick chart shows the uptrend for Precision Drilling
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.
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).
Precision Drilling (PD:TSX) moving up on above average volume
Precision Drilling (PD:TSX) 2-Year Weekly Candlestick Chart
Reference the previous post for Precision Drilling based on the daily chart.
Other stocks featured on tradeonline.ca include: Dundee REIT, Encana, Suncor, RioCan REIT, BMO, Shoppers Drug Mart, Pfizer, BCE, and Patriot Coal.
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.