Precision Drilling (PD:TSX) moving up on above average volume
Reference the previous post for Precision Drilling based on the daily chart.
The most important points from the above chart for the S&P 500 are:
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.
The most important points for this Dundee REIT chart analysis are:
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.
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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The most important points to note in the Precision Drilling (PD) chart analysis are:
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.
Precision Drilling is a leading provider of oilfield services.
Investors are seeking yield. RioCan has been a favorite with institutional and individual Canadian investors.
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.
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.
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.
Retail real estate poised to strengthen is a positive article on RioCan and other REITs.
Update May 19, 2011 – First-quarter report: RioCan gets boost from rental revenue.
Update May 31, 2011 – Target’s store picks a bullseye for RioCan REIT: TD
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
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.
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.
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.