Bullish Engulfing Pattern on the daily chart
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?
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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 could not break $41.
Your online trading success does not depend on your predictions for the market: your success depends on your online trades in reaction to market signals.
Updated article on Shoppers published in the National Post on March 30, 2011: Expanded Shoppers Drug services could help earnings, analyst says.
Please reference three previous posts on Shoppers Drug Mart.
- Shooting star candlestick for Shoppers Drug Mart
- Shoppers Drug Mart (SC) breaks resistance at $40
- Shoppers Drug Mart – Bullish white candlestick
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.
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
Daily Chart - (SC)
There was a bullish white candlestick for Shoppers Drug Mart (SC) on Friday, February 4.
It opened at $37.15 which was above the support level of $37.00. The stock traded to a high of $39.13 and closed at $38.77 which was a gain of 4.18% for the day. The tall white candlestick is the graphical representation of that price action.
Please customize and then reference the full-size chart from Bigcharts.com for a better overall view of the trend. Shoppers has been trading sideways since October so a break above the $40.00 resistance level would be a significant event.
Read the Globe and Mail article, Shoppers Drug Mart’s quest for an elixir, for some current background information.
Note: You must take a couple of minutes to customize Bigcharts.com so that the links to the charts open with the indicators used in this site.
Note: This analysis is for educational purposes. 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