Tag Archives: Technical Analysis

Precision Drilling (PD:TSX) – Weekly Chart

Precision Drilling (PD:TSX) moving up on above average volume
Precision Drilling (PD:TSX) two-year weekly candlestick chart showing above average volume associated with the bullish white candlesticks.  The 50-day simple moving average defines the uptrend.

Precision Drilling (PD:TSX) 2-Year Weekly Candlestick Chart

Reference the previous post for Precision Drilling based on the  daily chart.

Other stocks featured on tradeonline.ca include: Dundee REIT, Encana, Suncor, RioCan REIT, BMO, Shoppers Drug Mart, Pfizer, BCE, and Patriot Coal.

Can the S&P 500 break 1,330?

Traders are focusing on key resistance at 1,330 for the S&P 500
Can the S&P 500 index break resistance on the candlestick chart at 1,330

S&P 500 Daily Candlestick Chart

The most important points from the above chart for the S&P 500 are:

  • Resistance levels exist on all stock charts.
  • The S&P 500 must break and hold above the 1,330 level on the candlestick chart.
  • The new support level will then be 1,330.
  • The reversal of resistance to support is an important concept in technical analysis.

Complete the advanced chart settings and then view the weekly chart for the S&P 500 on BigCharts.

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.

Copyright © TradeOnline.ca All rights reserved

Precision Drilling breakout above $12 resistance level

Can Precision Drilling (PD) hold the new support level of $12?
Daily Candlestick chart for Precision Drilling showing the breakout above resistance at $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.

Precision Drilling is a leading provider of oilfield services.

Other stocks analyzed on this site include: Encana, SuncorRioCan, BMO, Shoppers Drug Mart, Pfizer, BCE and Patriot Coal.

Investors are seeking yield.  RioCan has been a favorite with institutional and individual Canadian investors.

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.

RioCan Real Estate Investment Trust Chart Analysis

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.

Technical analysis using candlestick charts for Riocan Real Estate Invest Trust - REIT

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.

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

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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

Bearish Engulfing Pattern for Shoppers Drug Mart

Shoppers Drug Mart could not break $41.

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.

Bearish Engulfing Pattern for Shoppers Drug Mart on the 3 month daily candlestick chart

 

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.

  1. Shooting star candlestick for Shoppers Drug Mart
  2. Shoppers Drug Mart (SC) breaks resistance at $40
  3. Shoppers Drug Mart –  Bullish white candlestick