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.
The TSX Index could not hold support of 12,600 in the old lateral trading range. Will the near-term downtrend stop at the support level of 12,300? If not, the TSX will move down to the support level of 12,000.
Should you invest in the TSX? The above chart is your answer. Now take a look at another chart.
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.
Candlestick chart analysis for the S&P 500 Index showing a shooting star candlestick and a hammer. This is a graphical representation of the index struggling to break resistance at the 1,425 resistance zone.
On a daily chart, you can see the 1,425 resistance zone in addition to the next near-term resistance level of 1,440.
A confirmed break above 1,440 would setup the S&P 500 Index for a test of major resistance at 1,470.
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 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.
There was a positive reaction to the earnings release for Thomson Reuters as indicated by the gap and the close of $29.78. But the shooting star candlestick is a graphical representation of the selling pressure at the $30.00 resistance level. The stock opened at $29.75, rallied to $30.21 but closed at $29.78: practically unchanged from the open.
The trend is everything in technical analysis. The major trend is down for Thomson Reuters, the intermediate trend is sideways and the near-term trend is up.
A confirmed break (use the percentage and time filter) above resistance of $30.00 would indicate an intermediate target price of $33.00. If the stock cannot break resistance, it will continue to trade in the congestion zone with support around the $28.00 level.
We are all students of the market and it can be a harsh teacher. Enjoy your trading day.
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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.
A shooting star candlestick developed on the daily candlestick chart which can be compared to a caution light.
It shows that the rally could not be maintained. The stock opened at $40.82, above the close for the previous day’s bullish white candlestick, which was a strong opening. But the bulls could not maintain the push as the stock rallied to a high of $41.59 where there was selling pressure and the stock closed at $40.87: this was not a good day for the bulls.
3-Month Daily Candlestick Chart
The trend is the most important concept in technical analysis. The intermediate trend (3 weeks to 3 months) is sideways and the near-term trend (within the last 3 weeks) is up. What we are trying to establish in this analysis is the likelihood of the near-term trend continuing upwards. Today, there is a hint of caution which you can see pictorially in the shooting star candlestick pattern.
Another important concept in technical analysis is support and resistance. On Monday, Shoppers Drug Mart closed above resistance at $40. This has been resistance for the last four months. The $40 price point reverses rolls and is now support for this stock. A close below $40 would be very negative for the near-term trend for Shoppers.
The intermediate trend (three weeks to three months) for Suncor is up.
But the shooting star candlestick is a warning signal: it is like a yellow light indicating caution. I do not want to see a close below $40 which is a support level. The next major support point would then be $35.
The most important point of technical analysis is to determine the trend for an index or equity.
This post will summarize the price action for the TSX over the past week. You can trade online using the graphical representation of candlestick charts.
The snippet of the first chart to the right, taken from this 3-year weekly chart of the TSX, reveals that the major trend (over six months) is up. You can draw a trend line under the lows to define the trend, but in this case the 50-day moving average is a good trend line. The snippet also shows two congestion areas on the weekly candlestick chart for the TSX: prices never go straight up but advance like the steps in a staircase.
Now, I will focus the analysis on the daily candlestick chart to determine the intermediate trend (three weeks to three months) and the near-term trend (less than two or three weeks) for the TSX.
TSX Daily Chart - Jan 28, 2011
The snippet of the second chart taken from this 6-month customized daily chart of the index focuses on the January congestion zone which is highlighted in the yellow box on the first chart.
Trend can go three ways: up, down and sideways. And, any index or equity can spend a lot of time trading sideways in a lateral trading range. The near-term trend for the index is sideways with support at 13,200 and resistance at 13,500.
Let’s focus on the price action for the TSX over the past week of January 24-28. You can review posts for some notes on the daily action.
Daily Chart - TSX
On Tuesday, the shadow of the spinning top bounced off support at 13,200. On Wednesday, the bullish candlestick was very encouraging. On Thursday, there was no follow through on the bullish candlestick and the spinning top spelled indecision with a feeble attempt to break 13, 500: this was not encouraging. Then, on Friday, the shooting star flamed out on its attempt at 13, 500.
This congestion zone must be monitored carefully as the rally that started in August looks a little extended. A close below 13,200 would be taken very seriously by most traders.
