Tag Archives: support

TSX Index candlestick chart analysis

Next support level for the TSX is 12,500

Candlestick chart analysis for the tsx index showing support levels and a double top formation at 14,300

TSX Index - Three-Year Weekly Chart

Key points from the above chart of the TSX Index:

  • Intermediate trend is down.
  • Near-term trend is down.
  • Second week below the 200-day simple moving average.
  • The 50-day moving average has crossed below the 100-day moving average.
  • Three bearish candlesticks for the last three weeks.
  • Last week’s candlestick has a shaven bottom.
  • RSI in a downtrend.
  • RSI crossed below 50.

Did I miss any other negative points?  Do you see any positive indicators?

Reference the previous analysis for the TSX Index.

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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.

Technical analysis of the TSX Index

TSX Index in consolidation mode
Three year candlestick chart analysis of the tsx index showing support and resistance so you can trade online using these indicators to make your online trading decisions.

3-Year Chart of the TSX Index

Reference last weeks analysis which was also a consolidation story for the TSX Index. This is in stark contrast to the S&P 500 Index and the Nasdaq Composite Index which are in an uptrend.

Also reference the most recent analysis of the TSX  based on the daily candlestick chart which identified the possibility of  a double top.

When trading online, you always deal in probabilities.  And the probability of a downside correction is greater than an upside breakout.  It has been a good run for the TSX  Index.

Read the National Post article: Now’s the time to diversify away from Canada.

TSX candlestick chart analysis

Can the S&P/TSX index break resistance of 14,300?
Three year candlestick analysis of the weekly chart for the tsx index showing volume, support and resistance levels.

TSX 3-Year Weekly Candlestick Chart

What are the key points to note on this  chart of the TSX index?

  1. Major resistance on the candlestick chart is 14, 300.
  2. The index could not close above 14,300 on two attempts.
  3. Is this the start of a double top formation on the weekly chart?
  4. Support on the weekly chart for the TSX is 13,500.
  5. Is the index moving into a consolidation pattern?
  6. Notice how the bullish engulfing pattern signaled the start of the uptrend in March, 2009.
  7. Did you board the train in March, 2009?  I was aboard with rest stops along the way.
  8. Candlestick chart formations indicated where you could disembark the train for rest stops.
  9. The bullish piercing pattern in July, 2010  indicated that the train was leaving the station again.
  10. Now, the train is at the station.  When will it leave?  And, in what direction?

Reference the previous chart analysis of the TSX 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.

Precision Drilling candlestick chart

Major resistance for Precision Drilling is $14.50
Precision Drilling three month candlestick chart showing a consolidation pattern

Precision Drilling (PD:TSX) 3-Month Daily Candlestick Chart

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.

You can reference the previous chart analysis for Precision Drilling.  Also visit the company website for fundamental data.

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.