Jul 312014
 
Major uptrend still in effect for the S&P 500. But how long more will it last?
S&P 500 chart analysis showing the trendline.

S&P 500 5-Year Weekly Chart

There is a high probability the S&P 500 will test the trendline which is the 200-day simple moving average.

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“The trend is your friend until it ends.”

Note: Click on HOME for updated postings. This technical analysis is for educational purposes so you can learn to trade online using candlestick charts and other technical indicators including volume, moving averages and oscillators. Please conduct your own chart analysis or consult your financial advisor before making investment decisions. The author of this article may hold long or short positions in the featured stock or index.

May 122014
 
All-time closing high and new support level for the DOW
Chart for the Dow Jones Industrial Average showing the all-time high and the new support level.

DJIA 1-Year Bar Chart

I have penciled in the the new support level of 16,600 for the Dow. This was the previous resistance level and the reversal of roles is an important concept in technical analysis. But always use time and percentage filters to confirm the breakout. On a time basis, if the Dow can hold above 16,600 for two days we have a new support level.

It was a strong day for the Dow in terms of the price action: closed near the high of the day.

On a volume basis, the volume was relatively low on the breakout. This could raise concerns because volume is the fuel that will drive the advance in an index or stock. But volume is not necessary to confirm a downtrend. A stock can fall with it own weight and relatively small volume.

I have concerns with the momentum indicators that I will elaborate on in another post.

As you can see, there is no sure thing in technical analysis. Just assigned probabilities.

Enjoy your trading day. If you don’t enjoy your avocation or vocation, then it is not worth doing.

Reference the last chart analysis for the Dow.

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“Keep it Simple”

Note: Click on HOME for updated postings. This technical analysis is for educational purposes so you can learn to trade online using candlestick charts and other technical indicators including volume, moving averages and oscillators. Please conduct your own chart analysis or consult your financial advisor before making investment decisions. The author of this article may hold long or short positions in the featured stock or index.

Apr 302014
 
Near-term uptrend with major resistance at 16600

Near-term uptrend for Dow Jones Industrial Average with major resistance at 16600.

There are three trends: major trend, intermediate trend and near-term trend. The major trend is up, the intermediate trend is sideways and the near-term trend in up.

Note the divergence and downtrend for MACD.

Conclusion: the Dow Jones Industrial Index will meet heavy resistance at 16600. Always trade in the direction of the major trend but in this case a little caution is warranted.

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“Keep it Simple”

Note: Click on HOME for updated postings. This technical analysis is for educational purposes so you can learn to trade online using candlestick charts and other technical indicators including volume, moving averages and oscillators. Please conduct your own chart analysis or consult your financial advisor before making investment decisions. The author of this article may hold long or short positions in the featured stock or index.

Apr 102014
 
Intermediate downtrend for Natural Gas with support around $4.50
Major uptrend for natural gas with support around $4.50

Natural Gas 3-Year Chart

Major uptrend for natural gas and intermediate downtrend with support around $4.50.

Encana is the big player in this space in the Canadian market. Reference my chart for Encana.

SHORT-TERM ENERGY AND SUMMER FUELS OUTLOOK

 

Percent-of-electricity-generated-from-nonhydro-renewals

About 6.2% of total U.S. electricity supplies in 2013 were generated from nonhydro renewable energy sources such as wind, solar, biomass, and geothermal, up from 5.4% in 2012. But 11 states produced electricity at more than twice the national average from these sources—accounting for between 14% and 32% of their net electric generation—according to preliminary 2013 generation data in EIA's Electric Power Monthly report.

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“Keep it Simple”

Note: Click on HOME for updated postings. This technical analysis is for educational purposes so you can learn to trade online using candlestick charts and other technical indicators including volume, moving averages and oscillators. Please conduct your own chart analysis or consult your financial advisor before making investment decisions. The author of this article may hold long or short positions in the featured stock or index.

Feb 022014
 
Confirming uncertainty in emerging markets
Copper chart showing the near-term downtrend and tradng below the 200 day moving average.

Copper 1-Year Chart courtesy of StockCharts.com

Reference the last chart analysis for copper published on January 3, 2014.

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“The stock market is never obvious. It is designed to fool most of the people, most of the time.” – Jesse Livermore

Note: Click on HOME for updated postings. This technical analysis is for educational purposes so you can learn to trade online using candlestick charts and other technical indicators including volume, moving averages and oscillators. Please conduct your own chart analysis or consult your financial advisor before making investment decisions. The author of this article may hold long or short positions in the featured stock or index.

© 2014 TradeOnline.ca

Jan 232014
 
Here are the points to monitor for the S&P 500 Index
Trend line is still holding for the S&P 500 index.  Reference the support levels to monitor.

S&P 500 Index Daily Chart

Reference the last sector analysis for the S&P 500 Index.

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“It is not when you buy that counts, it is when you sell”

Note: Click on HOME for updated postings. This technical analysis is for educational purposes so you can learn to trade online using candlestick charts and other technical indicators including volume, moving averages and oscillators. Please conduct your own chart analysis or consult your financial advisor before making investment decisions. The author of this article may hold long or short positions in the featured stock or index.

© 2014 TradeOnline.ca

Dec 112013
 
High probability TSX Index will test support of 12,900
Tall shaven head and bottom candlestick does not bode well for the TSX Index.  High probability the index will test major support of 12,900.

TSX Index 7 Month Daily Candlestick Chart courtesy of StockCharts.com

Technical analysis is all about evaluating probabilities. There are no sure things when you evaluate a chart: just guideposts. In the near-term, the above chart indicates a high probability that the TSX Index will test support of 12,900. And there is a low probability that the index will break resistance of 13,500.

Here are the negative points from the above chart:

  1. Tall shaven head and bottom candlestick on the chart today
  2. The 10-Day SMA crossed below the 20-Day SMA
  3. The volume was average today but volume does not have to confirm a downtrend
  4. RSI is confirming the downtrend
  5. Notice the divergence when RSI did not confirm the November high

Reference the last chart analysis for the TSX Index showing the performance by sectors.

Reference the last chart analysis for copper which has a major impact on the materials sector.

Reference the breakout for the TSX above resistance on October 18, 2013. This is now the support zone on the above chart. The reversal of roles is an important concept in technical analysis.

Reference the importance of the 12,900 support zone which was a a area of consolidation back to early 2012.

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Note: Click on HOME for updated postings. This technical analysis is for educational purposes so you can learn to trade online using candlestick charts and other technical indicators including volume, moving averages and oscillators. Please conduct your own chart analysis or consult your financial advisor before making investment decisions. The author of this article may hold long or short positions in the featured stock or index.

© 2013 TradeOnline.ca

Nov 062013
 
The 5 year chart speaks for itself and still yields 5.93%
Pizza Pizza chart analysis based on the weekly bar chart.

Pizza Pizza 5 Year Bar Chart

Pizza Pizza Royalty Corp. Announces Third Quarter Financial Results Tuesday, November 5th, 2013

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Note: Click on HOME for updated postings. This technical analysis is for educational purposes so you can learn to trade online using candlestick charts and other technical indicators including volume, moving averages and oscillators. Please conduct your own chart analysis or consult your financial advisor before making investment decisions. The author of this article may hold long or short positions in the featured stock or index.

© 2013 TradeOnline.ca