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.
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.
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.
Can Precision Drilling (PD) hold the new support level of $12?
Precision Drilling Daily Chart
The most important points to note in the Precision Drilling (PD) chart analysis are:
The major trend, intermediate trend and near-term trend are all up.
The 40 day moving average is a good approximation of the trend line.
Always trade in the direction of the trend.
There was a breakout above resistance of $12.
Major support is now $12.
The reversal of resistance to support is an important principle in technical analysis.
The breakout was on above average volume.
Trading volume measures the force behind the move.
On balance volume is confirming the upward trend.
The MACD confirmed the breakout.
If an online trader made a buy on the breakout at $12.50, the trader must set up a stop-loss at that time. A reasonable stop-loss would be below support at $12. A stop-loss of $11.87 would represent a loss of around 5% and maybe not close enough that it would be taken out on a light test of support. Anyway, you will be around to trade another day. Risk management is an important concept in online trading. Preservation of capital is rule #1.
A confluence of negative technical indicators for Suncor on the daily chart.
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?
The trend is the most important concept in technical analysis.
You must always trade in the direction of the trend, and the major trend is up for RioCan Real Estate Investment Trust. All the real estate invest trusts (REITs) listed on the TSX have performed very well over the past two years.
What is the definition for the major trend? The three-year weekly candlestick chart is best for establishing the major trend (in effect for six months to a year) for a stock or an index. The major trend for RioCan is up with current resistance at $24.
3-Year Weekly Chart for Riocan
RioCan is the largest real estate investment trust in Canada and the liquidity makes this an attractive investment for institutional investors. It is worth taking a few minutes to review the profile for this company. Even if you focus on technical analysis to trade online, you need to have a basic understanding of fundamental analysis. Also, review the most recent quarterly results for RioCan.
Take a couple of minutes to input the advanced chart settings for BigCharts and then look at the this chart. You will have the advantage of viewing a larger chart and the ability to adjust the time period and other technical indicators. In a previous post, I presented an analysis of RioCan based on the 6-month daily candlestick chart and the reaction of the market to the release of the quarterly results. This analysis focused on the near-term and intermediate trend.
Visit Investment Talk with SPBrunner for an excellent review of the fundamental data for RioCan Real Estate Invest Trust.
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.
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.