We may have a bottom in the recent sell-off but the intermediate trend is still down. Cash is king in this market.
Reference the previous analysis of the TSX Index for the downside risk if the index cannot hold the 12,000 and 11,500 support levels.
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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.
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.
Stocks to watch Tuesday: Coca-Cola, J&J, Apple: review this post from MarketWatch. The reaction on the chart is all that counts as each of the companies report earnings.
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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.
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.
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.
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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.
One of the most important principles in technical analysis is to trade in the direction of the trend: buy when the stock is trending up. In other words, buy on strength and sell on weakness.
DUNDEE REIT (D.UN-TSX) Three-Year Weekly Chart
The most important points for this Dundee REIT chart analysis are:
The major trend (in effect for at least six months) is up.
The intermediate trend (in effect for three weeks to three months) is up.
The near-term trend (in effect for two to three weeks) is up.
Major support is $30.
Dundee traded in a consolidation range of $30-$31 since November, 2010.
There is a tentative breakout at $32. Will it hold?
A target price of $36 is reasonable based on the chart and fundamental data.
Dundee REIT owns high quality office properties across Canada. Review the fundamental data for Dundee REIT detailed on their website. RioCan REIT, the biggest Canadian REIT listed on the TSX, was featured on this site March 8, 2011.
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 stock in the featured company but is in no way associated with the company.
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.
