
MY JOURNAL FOR MONDAY MORNING – July 6, 2020
NEWS, BREAKOUTS, MOMENTUM PLAYS, & BOTTOMS
Follow-up Chart (8-days later)
Award Winning Technical Analysis | Greg Schnell.com | Avoid the downside and learn to keep more of your profits. – LEARN MORE
Tradable Lows in the Canadian Technology Sector 📝
Understanding market technicals becomes a very important tool when emotion takes over and price swings don’t make sense. This is especially true during times of uncertainty and periods of market volatility like we’re experiencing now. Many people consider technical analysis voodoo and refer to it as people drawing lines on a stock chart. Although the drawing lines part might be true, technical analysis is about documenting investors psychology. Resistance and support levels, trendlines, market breadth and the VIX (market volatility index) are all created by fear and greed (people’s emotions). My job as a chartist is to document that fear and greed.
What most people don’t understand is that the stock market will bottom before the bearish news flow hits its peak. If anyone has tuned into the news, they’d think the sky was falling. I have also noticed through my interactions that investor psychology has flipped and in my “opinion” it is wrong. Many people were wrongly trying to buy every dip on the way down (wrongly attempting to guess a bottom). This pattern has lead to investors becoming too scared to look for buyable dips and are now resorting to selling at any chance they get.
I like to use the S&P500 as my trend indicator and the VIX as my fear gauge. As the old saying goes, “a rising tide will float all boats”. When the S&P500 moves higher it forces money into most equities and causes the VIX index to collapse. – READ MORE
Dwight Galusha, CMT, is a contributor of 5i Research is a conflict-free investment research provider for retail investors offering research reports, model portfolios and investor Q&A, which is available to try for free (Click Here).
Gold Miners Get Set To Surge | Greg Schnell, CMT | Market Buzz (07.01.20) – GregSchnell.com 📺
The gold miners have started to rotate higher and look very solid as they continue to move up.Greg rolls through lots of the charts to demonstrate how nice the long term shape of the group looks.
Good trading,
Greg Schnell, CMT, MFTA
Senior Technical Analyst, StockCharts.com
Author, Stock Charts For Dummies
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BREAKOUTS, MOMENTUM PLAYS, & BOTTOMS 📈
Consumer Staples
Alimentation Couche-Tard (TSX:ATD.B) – Daily Chart
Couche-Tard is building a continuation triangle near all-time highs while the PPO momentum indicator attempts to curl higher. Watch for a breakout from this technical pattern as it would suggest a continuation of the prevailing uptrend. This price action and technical setup is very bullish. I know I sound like a broken record but I’ll say it again, “Buying stocks that are breaking out from a big base to a new high is a strategy that can not only be very powerful, but very profitable. Being able to identify this type of breakout not only allows investors to take a position in stocks during the early stages of an uptrend (often the starting point of a major price move), but also allows investors to take advantage of an asymmetrical equation that often translates into an acceleration in upside price momentum as there’s no resistance (overhead supply) from people selling at a loss (everyone in the stock is now a holding a winning position)”.
North West Company (TSX:NWC) -Daily Chart
North West Company has started to push higher from a bull flag continuation pattern and is threatening to make a new all-time high. Watch for continued upside price momentum.
Empire Company (TSX:EMP.A) – Weekly Chart
After building a bull flag continuation pattern over the last 3 weeks, Empire Company is now pushing up against the underside of a major horizontal resistance line while the weekly PPO momentum indicator attempts to give a bullish sign (a move above the zero line). This technical setup is very bullish and suggests a major breakout could be near.
Canadian Banks
All the Canadian Banks appear to be trying to put in a tradeable low. Price action on most of our banks are setup very similar to the three charts below. When zoomed in, price action has either broken out from a little falling wedge continuation pattern or is setting up near the apex. Watch for continued upside price momentum as a suggested stop-loss order could be place right below the most recent price label appearing on the chart.
The Bank of Nova Scotia (TSX:BNS) – 2 hour Chart
Bank of Montreal (TSX:BMO) – 2 hour Chart
Canadian Imperial Bank Of Commerce (TSX:CM) – 2hr Chart
Technology Sector
AcuityAds Holdings (TSX:AT) – Daily Chart
AcuityAds is setup near the apex of a bull flag continuation pattern and is pushing up against the underside of a major horizontal resistance line while the PPO momentum indicator attempts to curl higher. Watch for the breakout.
TECSYS (TSX:TCS) – Daily Chart
TECSYS is breaking out after successfully retesting the May breakout in the form of a falling wedge continuation pattern while the PPO momentum indicator bounced off the zero line.
Open Text (TSX:OTEX) – 2hr Chart
Open Text is near the apex of a continuation triangle while the 2hr PPO momentum indicator attempts to curl higher off the zero line.
Converge Technology Solutions (TSXV:CTS) – Weekly Chart
Converge Technology is threatening to breakout from the apex of a multi-month continuation pattern which is located just below a new all-time high. Watch for a breakout as it would suggest more upside momentum to follow.
Metals and Mining
Endeavour Mining (TSX:EDV) – Weekly Chart
Endeavour Mining has started to breakout from a giant base to an 11+ year high while the Monthly PPO momentum indicator begins to accelerate higher off the zero line. On this weekly chart price action is attempting to breakout from a bull flag continuation pattern will the PPO momentum indicator accelerates higher.
Osisko Gold Royalties (TSX:OR) – Daily Chart
Osisko Gold Royalties has started to push higher from a flagging pattern and is threatening to breakout above a major horizontal resistance line. Watch for a price move above the 13.80 price label as it would suggest more upside price momentum to follow.
K92 Mining (TSXV:KNT) – Daily Chart
K92 Mining is pushing up against the underside of a major trendline and is threatening to breakout from a 5-month continuation pattern while the PPO momentum indicator bounces off the zero line. Keep this chart on close watch as a breakout from this technical pattern would suggest more upside price momentum to follow.
Telecom Sector
All the Canadian Telecom charts appear to be trying to put in a tradeable low. Price action on all of the charts are setup very similar to the three charts below. When zoomed in, price action is setting up in a type of continuation pattern. Watch for a price move above the horizontal (dashed line) resistance line drawn on the chart with the arrow. A breakout would suggest more upside price momentum to follow.
BCE (TSX:BCE) – 2hr Chart
TELUS (TSX:T) – 2hr Chart
Rogers Communications (TSX:RCI.B) – Daily Chart
Utilities
Northland Power (TSX:NPI) – Daily Chart
Northland Power ended Friday with a new closing 52-week high (and a new closing all-time high). Watch for continued upside momentum.
Boralex (TSX:BLX) – Daily Chart
Boralex is threatening to breakout to a new all-time high while the PPO momentum indicator accelerates higher.
Brookfield Renewable Energy Partners (TSX:BEP.UN) – Daily Chart
Brookfield Renewable Energy is setting up to potentially breakout from a multi-month continuation pattern and above a major horizontal resistance line while the PPO momentum indicator bounces off the zero line.
Canadian Energy
Over the weekend at GregSchnell.com I featured a Canadian Energy focused daily setup report where I featured CNQ, CPG, MEG, OVV, and TCW. To access this article please subscribe here: – GregSchnell.com
Many charts from the Canadian energy sector that are all setup near the apex of a bull flag continuation pattern. Here is a link to a great StockCharts article for those not familiar with the bull flag setup: https://school.stockcharts.com/doku.php?id=chart_analysis:chart_patterns:flag_pennant_continuation.
Trican Well Service (TSX:TCW) – Daily Chart
Trican Well Service is setup near the apex of a bull flag continuation pattern and is pushing up against the underside of a major horizontal resistance line while the PPO momentum indicator attempts to curl higher. Watch for the breakout.
TORC Oil & Gas (TSX:TOG) – Daily Chart
TORC Oil & Gas is setup near the apex of a bull flag continuation pattern while the PPO momentum indicator attempts to curl higher.
Tamarack Valley Energy (TSX:TVE) – Daily Chart
Tamarack Valley Energy is coiled between the upper trendline of a bull flag and a major horizontal resistance line while the PPO momentum indicator begins to curl higher. Watch for the breakout.
Other Setups To Watch
Restaurant Brands (TSX:QSR) – Daily Chart
Restaurant Brands is setup near the apex of a bull flag (small falling wedge) type continuation pattern and is pushing up against the underside of a major horizontal resistance line while the PPO momentum indicator attempts to curl higher. Watch for the breakout.
Park Lawn (TSX:PLC) – Daily Chart
Park Lawn is trying to bounce off the bottom of a continuation triangle pattern while the PPO momentum indicator approaches the zero line. Watch for upside momentum.
Cameco (TSX:CCO) – Daily Chart
Cameco is attempting to push higher form a falling wedge continuation pattern and above a major horizontal resistance line highlighted by the volume by price bar on the left side of the chart while the PPO momentum indicator begins to curl higher.
MOMENTUM ALERT SIGNALS 📡
Have a great day! 🙂