Technical analysis
Selling call options at resistance
Martin Noël
As we can see from the following chart, the share price of Canada Goose Holdings Inc. (GOOS) just hit the $90 resistance level after a major 50% rally in just one month. We can also see that the RSI (5) has fallen, while the stochastic indicator shows it is in overbought territory (%K ). This situation is an indication of a...
A bearish diagonal spread on a resistance level
Martin Noël
As the following chart shows, the price of shares in Bank of Nova Scotia (The) (BNS) has been on a downward trend over the last 12 months. Over the last few weeks, the price has stabilized in a corridor of $69 to $72, and it has faced resistance when it reached the 30-day moving average. The chart shows that, in the last year,...
Taking advantage of a bull triangle
Martin Noël
As the following graph shows, the price of shares in Colliers International Group (CIGI) has clearly been on a bullish trend since the stock bottomed out at $58.51 on September 19, 2017. We can see that the 200-day moving average (in red) provided support when the price fell in February 2018, and that, throughout the series,...
Selecting the Optimal Put Option
Martin Noël
As the following graph shows, the price of shares in CGI Group Inc. (GIB.A) has reached an all-time high. We can also see that the RSI (Relative Strength Index) indicator and the stochastic oscillator (%K) are both in oversold territory. In the past, this has been followed by corrections that brought the stock price back down...
Making the most of a lower price for shares of Dollarama Inc.
Martin Noël
As the following graph shows, the share price of Dollarama Inc. (DOL) fell $22.60, from a high of $170.00 reached on January 29 to a low of $147.40 on February 9, 2018. DOL then rallied to $158.97, right up to the level of its moving averages. Since then, the stock has been below its moving averages, and if it continues to...
An Iron Butterfly Spread on Shares of Canopy Growth Corporation
Martin Noël
As you can see in the following graph, shares in Canopy Growth Corporation (WEED) have shot up in price since bottoming out at $6.58 in June 2017. This represents more than 600% growth to its recent peak at $44. Since then, WEED has slipped, falling to $29.50 before bouncing back and has been fluctuating in a range that could...
Profiting on a higher share price for Franco-Nevada Corp.
Martin Noël
As you can see in the following graph, the price of shares in Franco Nevada Corp. (FNV) appears to have stabilized at around $99, just above the $95 support level, after having fallen almost systematically since November 28 when it peaked at $110.18. This decline pushed the stochastic oscillator, shown at the bottom of the...
Selling put options to profit from rising prices for shares of Agnico Eagle Mines Limited
Martin Noël
As the following graph shows, the price of shares in Agnico Eagle Mines Limited (AEM) appears to be on the verge of an upswing of unknown vigour. This new trend is confirmed by three indicators – the MACD, the RSI and the stochastic oscillator (%K) – that are giving clear signs of strength. Daily chart for AEM ($59.06 on...
Mixed Long Condor Spread on Shares in Dollarama Inc.
Martin Noël
As the following graph shows, the price of shares in Dollarama Inc. have just created a brief trough at $118.81 after having peaked at $132.34 in June 2017. Recently the stock has stayed within this range, closing at $123.80 on August 22, 2017. Over the next few weeks, $125 may act as a resistance level and $120 may be a...
Writing Calls Covered by Long-Term Call Options on CM Shares
Martin Noël
As the following graph shows, share prices for Canadian Imperial Bank of Commerce (CM) peaked in February 2017, after which they fell by almost 15% to settle at around $104. Since then, CM is up slightly and trying to break through $110, but this resistance level may be difficult to breach, since it was a support level in...
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