Candlestick chart shows the uptrend for Precision Drilling
Precision Drilling (PD:TSX) 2-Year Weekly Chart
Reference the previous weekly chart for Precision Drilling. Also reference the chart analysis based on the daily candlestick chart.
The important point from this chart is that the stock is in an uptrend and you always trade in the direction of the trend. But, Precision Drilling is a little overextended as indicated by the height above the 50-day moving average so we could see a correction to support at $13.50. If the stock broke $13.50, the next minor support level would be $13.00. Major support is at $12.00 which is near the the 50-day moving simple moving average.
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 long or short positions in the featured stock or index.
Precision Drilling (PD:TSX) moving up on above average volume
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.
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?
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.
How did the market react to the Riocan quarterly results?
It does not matter what I think about the results and it does not matter what you think about the results. The only thing that counts is the market reaction: the candlestick chart shows graphically that the reaction was positive. The next question: what will be your reaction to these results?
6 Month Daily Chart for RioCan
Online trading strategy: RioCan (rei.un) yields 5.69% at the current price. The stock had a good run from a low of $11.50 in March, 2009 as both small investors and institutional players poured money into the REIT sector. When you are getting practically nothing on your money left in a bank account, these yields looked very attractive. And the current 2-year yield of 1.826% on Government of Canada Bonds is not exactly lucrative. Money is still flowing into the real estate investment trust sector. Yes, RioCan is still a buy at the $24 price level and the yield provides downside protection. RioCan has a monthly distribution of $0.1150 which equals an annual distribution of $1.38. I would be comfortable with a price target of $28 for this stock which equates to a yield of 4.93%.
RioCan Real Estate Investment Trust Announces Results for Fourth Quarter and Year Ended December 31, 2010. Link to the results and other excellent resources at TMX Money.
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.
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The most important point in technical analysis is to determine the trend.
The intermediate and near-term trend for Pfizer (PFE) is up. This drug stock had a very good move last week as indicated by the tall bullish white candlestick. Also, the volume was above average: the volume is the fuel that drives a stock higher. Any upward price movement on low volume is suspect. If the stock can break resistance at $20, the next target price will be $22.
Pfizer, including other drug stocks, has underperformed the Dow over the last couple of years. Pfizer has a decent yield of 4.15% and a solid cash flow. Now, traders are buying this orphan.
Pfizer - 2-Year Weekly