Technical Analysis is about avoiding snakes and catching ladders
Note: This technical analysis is for educational purposes. Please conduct your own analysis or consult a financial advisor before making investment decisions. The author of this article may hold long or short positions in the featured stocks or indexes.
Fortis has increased its dividend payment to common shareholders every year for 42 consecutive years, longer than any other Canadian public corporation.
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.
Beginning in 2013, you can see the start of the divergences in the TSX and Dow. In 2015, the divergence accelerated as oil prices collapsed. Major support for the Dow is around 16,000. Major support for the TSX Index is around 12,000.
Comparison of the TSX and the Dow from 2004 to 2016
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“Technical Analysis is about probabilities.”
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.
Major uptrend still in effect for the S&P 500. But how long more will it last?
S&P 500 5-Year Weekly Chart
There is a high probability the S&P 500 will test the trendline which is the 200-day simple moving average.
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“The trend is your friend until it ends.”
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.
All-time closing high and new support level for the DOW
DJIA 1-Year Bar Chart
I have penciled in the the new support level of 16,600 for the Dow. This was the previous resistance level and the reversal of roles is an important concept in technical analysis. But always use time and percentage filters to confirm the breakout. On a time basis, if the Dow can hold above 16,600 for two days we have a new support level.
It was a strong day for the Dow in terms of the price action: closed near the high of the day.
On a volume basis, the volume was relatively low on the breakout. This could raise concerns because volume is the fuel that will drive the advance in an index or stock. But volume is not necessary to confirm a downtrend. A stock can fall with it own weight and relatively small volume.
I have concerns with the momentum indicators that I will elaborate on in another post.
As you can see, there is no sure thing in technical analysis. Just assigned probabilities.
Enjoy your trading day. If you don’t enjoy your avocation or vocation, then it is not worth doing.
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.
There are three trends: major trend, intermediate trend and near-term trend. The major trend is up, the intermediate trend is sideways and the near-term trend in up.
Note the divergence and downtrend for MACD.
Conclusion: the Dow Jones Industrial Index will meet heavy resistance at 16600. Always trade in the direction of the major trend but in this case a little caution is warranted.
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“Keep it Simple”
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.
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 stock market is never obvious. It is designed to fool most of the people, most of the time.” – Jesse Livermore
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.