Bullish Outlook
Navigating a Slippery Slope
Jason Ayres
As I begin to write, oil has suffered a precipitous top to bottom (bottom? maybe) decline of over 30% from the high this year. What drove it higher? The most common answer has been the possibility of U.S. sanctions on Iran. This caused significant concern of a shortage in supply. A market fearful of an oil shortage...
Getting Paid With the Intention of Buying Shares
Martin Noël
As the following chart shows, the price of shares in Canadian Tire Corporation Limited, Cl. A (CTC.A) plunged 20.6%, from a peak of $183.93 on August 8 to its recent trough at $146.08 on October 11. It has since climbed to just above $150, allowing us to use this trough as a short-term support level. An investor who is...
Commitment to Buy Stock Through a Ratio Spread
Martin Noël
As you can see in the following chart, the price of shares in Canopy Growth Corporation (WEED) appears to be stabilizing, for now, in a range between a high of $74.45 reached on September 5, 2018 and its most recent low of $52.80, reached on September 14. We can also see that its high of $48.72 on June 22 may represent a...
How to benefit from the rising vapors of cannabis
Martin Noël
The cannabis market has been booming since August 15, 2018 when Constellation Brands Inc. announced a major $5 billion investment in Canopy Growth Inc. (WEED). Since then, the stock has shot up 132.6% from a low of $32.01, and it recently topped out at $74.45. Its closest competitor, Aurora Cannabis Inc., has ridden the same...
Writing put options based on a 50-day moving average
Martin Noël
As the following graph shows, the stock of Colliers International Group (CIGI) has begun a slight correction following a strong bullish trend that began in February, and it has now landed right on its 50-day moving average. Its RSI and the stochastic oscillator are trending upwards, so the bullish trend will be confirmed if the...
Selecting the Optimal Call Options
Martin Noël
As the following chart shows, the price of shares in Rogers Communications Inc. cl. B (RCI.B) has just broken through $63, which has been a major resistance level since April. While there can be no guarantees, this bullish trend could take the stock to another resistance level over the next few months, at around $70. ...
Timing the Bottom on BCE
Patrick Ceresna
There is no shortage of analysts offering alternating fundamental outlooks for BCE (TSX:BCE). Some concerned with the business model and declining growth rates, others proclaiming the BCE dividend stream to be more sound than owning bonds. Personally, as a trader I look for the tactical play where I can profit from key...
A Bullish Position to Optimize Risk-Reward
Martin Noël
As the following graph shows, shares in Royal Bank of Canada (RY) veered into correction territory after peaking at $108.52 on January 22, 2018. At the current price of $97.98, the security is down by over 9.7%. With the RSI (Relative Strength Index) indicator on the rise and the stochastic oscillator (%K) indicating that the...
Writing put options on a support level
Martin Noël
As the following graph shows, the share price of Canadian Imperial Bank of Commerce (CM) has been trending downward since the beginning of 2018. When markets closed on Friday, March 23, CM was trading at $114.07. But as we can see, a price range of $112 to $114 has represented a support level from which prices surged twice....
Writing Put Options to Profit from Higher Prices for Shares of Premium Brands Holdings Corporation
Martin Noël
As the following graph shows, the share price of Premium Brands Holdings Corporation (PBH) has been on a bullish trend, with some more or less large corrections since reaching a plateau in the spring of 2017. Until we see evidence to the contrary, we should assume that this trend will continue for a while. Daily chart as at...
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