Tag Archives: support

The trend is up for Dundee REIT (D.UN:TSX)

Dundee Real Estate Investment Trust

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.

Candlestick chart for DUNDEE REIT (D.UN-TSX) showing support and resistance

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.

A Financial Post article with reference to Dundee REIT: Be picky in strong 2011 for Canadian REITs.

A Globe and Mail article with a positive reference for Dundee REIT and REITs in general: A healthy year of gains seen for REITs.

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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 stock in the featured company but is in no way associated with the company.

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Can Encana break resistance at $36?

Bullish white candlestick on the weekly chart for Encana.
Bullish candlestick chart for EnCana showing major support at $28 and major resistance at $36

Encana Weekly Chart for March 18, 2011

The most important points on the Encana weekly chart are:

  1. The major trend and intermediate trend are both sideways.
  2. The near-term trend (less than three weeks) is up.
  3. Major support is $28: liquidate longs if Encana breaks support.
  4. Major resistance is $36: add to long positions if Encana breaks resistance.
  5. Above average volume on the bullish white candlestick.

To trade online, you need a grasp of both technical and fundamental data. Natural gas the next ‘green hope written by Gwyn Morgan is an excellent article.  After months of quiet negotiation, energy giant Encana Corp has agreed to buy a minority stake in a natural gas export project that is positioned to redraw Canada’s energy map.

Encana in the largest natural gas producer in Canada. Visit the Encana website to research the fundamental data on the company.

Some of the other Canadian stocks  featured on this site include:  Suncor, Precision Drilling, RioCan, BMO, Shoppers Drug Mart and  BCE .

Can the S&P/TSX index hold support at 13,500?

Weekly candlestick chart for the TSX index showing support at 13,500

The tsx index sold off last week as shown by the long dark candlestick and bounced off support at 13,500.  The chart for this week shows the spinning top candlestick which is neutral and indicates uncertainty in the market.  The positive point here is that the index is currently—as of the close on Wednesday—holding the support level.

This two year weekly candlestick chart of the tsx index shows a spinning top candlestick above support at 13,500

TSX Two Year Weekly Candlestick Chart

The overall online trading strategy at this stage in the market is to raise the cash level in your portfolio and not add to your long positions. Some so-called value investors are adding to income producing stocks on the dips which include real estate investment trusts (REITs) and some of the financials. And the day traders will be trading the range of 13,500 and 14,000 in their online trading accounts: buy at support and sell near resistance.

Take a few minutes to customize BigCharts so you can view the above chart with the same settings on your computer.  Take a look at the two-year annotated chart for the tsx index for a historical perspective of the market. This story from the National Post lists some of the fundamental data moving the markets.

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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.

Copyright © TradeOnline.ca All rights reserved

TSX at an advanced stage in this intermediate swing

Major support is now 13,500 for the TSX composite index.
Technical analysis - A bearish engulfing candlestick pattern for the tsx index which could not hold 14,000

1-Year Weekly Chart for the TSX Composite Index

From the July 5, 2010 low of 11,065; the index gained 29.5% to the March 7, 2011 high of 14,329.  This has been a significant move  over this eight month period. I usually look for reversal patterns to develop when the market has an intermediate move of 20%.  The TSX is at an advanced stage in this intermediate swing and any technical evidence indicating a reversal must be taken seriously. In other words, the odds of a  correction are much greater than the odds of an upward move.

Reference the two-year weekly annotated chart for the S&P/TSX composite index to get an overall perspective for the market.

Suncor candlestick chart analysis

Bearish engulfing candlestick pattern on the weekly chart.
Suncor weekly chart shows the bearish engulfing candlestick pattern with support at the 50 day moving average and major support at $40

Suncor 2-Year Weekly Chart

The previous post of the chart analysis for Suncor was based on the daily candlesticks.  This analysis is based on the weekly chart and shows the same information from a different viewpoint.  Current support is at the 40 to 50 day moving average with major support at $40.  We do not want to see Suncor close below support at $40.00.

This is not the best looking chart over the two-year period: the major trend has been sideways.

Fundamental data for Suncor to complete your evaluation of this TSX listed stock.

Some of the other Canadian stocks that have been featured include: Encana, Precision Drilling, Riocan, BMO, Shoppers Drug Mart, and  BCE.

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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.

Copyright © TradeOnline.ca All rights reserved

Is the sun still shining on Suncor?

A confluence of negative technical indicators for Suncor on the daily chart.
Technical analysis for Suncor using a candlestick chart, moving averages, OBV and MACD

Suncor 6-Month Daily Candlestick Chart

Major support for Suncor is at $40.00 on this daily candlestick chart.  You must monitor the chart at this stage for a candlestick pattern that indicates the stock can hold this support level.  The near-term trend is down: Suncor has moved below the 10 day and 20 day moving averages.  Can the stock hold the 40 day moving average?

Please reference the the March 11, 2011 weekly chart of Suncor for another perspective.

The February 6, 2011 chart shows Suncor struggling at the $40 level which is now major support.

85.2% gain in the TSX since March, 2009

Technical analysis gives you a snapshot of the S&P/TSX composite.

It has been a good run, and now is the time to closely monitor the candlestick charts and confirming indicators for a top reversal pattern.

Technical Analysis - 2 year weekly annotated candlestick chart for the TSX showing trend lines, piercing patterns, tweezers bottom, bullish engulfing pattern and the mighty hammer.

2-Year Weekly Candlestick Chart for the TSX

This is an excellent article from the National Post covering the fundamental valuation metrics for different markets: Did I miss the rally?

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Note: This analysis is for educational purposes so you can learn to trade online using candlestick charts. 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