Major support is now 13,500 for the TSX composite index.
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.
Bearish engulfing candlestick pattern on the weekly chart.
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.
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 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.
The long-term trend, intermediate trend and the short-term trend are all up for the S&P/TSX as of Friday, February 18.
All the technical indicators look good. But, the market had a good run and I think it is overextended. What will be the excuse to book profits? Investors are looking for a reason.
S&P/TSX 6-Month Daily Chart
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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.
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.
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 intermediate trend (three weeks to three months) for Suncor is up.
But the shooting star candlestick is a warning signal: it is like a yellow light indicating caution. I do not want to see a close below $40 which is a support level. The next major support point would then be $35.
TSX closes at 13,841 which was in a whisker of the high for the day of 13,844. When the close is at the high or near the high for the day, the candlestick is classed as having a shaven head.
The bullish white candlestick for today (Thursday) is a graphical presentation of what is logically bullish:
The TSX index opened above both the previous day’s (small red insignificant candlestick) close and the close for the bullish white shaven head candlestick on Tuesday.
There was a small lower shadow which indicated that there was little sell-off after the open.
It was a relatively tall candlestick which was just a graphical representation of the 161 point (+1.18%) move in the index.
There was no upper shadow: in other words there was no profit taking at the top of the market.
The bulls were definitely in charge today and I now want to introduce the concept of confirming indicators. Please customize Bigcharts so that we are singing from the same page in the hymn book, and then look at the 6-month daily candlestick chart which will open in a new window. On this chart you will notice the following:
You will see the bullish white candlestick where I snipped the chart for this post.
All three short-term simple moving averages are above each other and are moving up.
The close today is above all the short-term moving averages.
The trading volume was relatively high. The trading volume is the fuel that lights the candlestick and should increase as the index rises.
The on balance volume is trending up. It should move in the direction of the price trend: if not, we have divergence and this is not good.
The MACD indicator, a short-term momentum indicator, is moving up in the direction of the price trend.
