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Research in Motion Limited (NYSE:RIMM $70.47 U.S., TSE: RIM $76.84 Cdn.)
News events: Lower third quarter guidance, downgrades by at least four investment dealers
Technical comment: Research in Motion opened about 15% lower in U.S. and Canadian Dollars this morning. It broke support in U.S. Dollars at $70.38 and in Canadian Dollars at $77.56. It also broke below its 50 day moving averages in U.S. and Canadian Dollars. Intermediate trend changed from up to neutral in both markets. Next support levels are at $63.36 U.S. and $74.06 Cdn. Both of these levels are approximately at the stock’s 200 day moving average. Seasonal influences are positive from October to early January.
Chart courtesy of StockCharts.com www.stockcharts.com
Chart courtesy of StockCharts.com www.stockcharts.com
TSX Financial Services Index (SPTFS $176.61 Cdn.)
News event: UBS says that Canadian banks are about to enter a new golden age
Source: FP Trading Desk
Technical comment: The TSX Financial Service Index currently has a positive technical profile. Intermediate trend is up. The Index trades above its 50 and 200 day moving averages. Strength relative to the TSX Composite Index has been positive since February. Seasonal influences are positive from October to December. However, a word of caution in the short term! Short term momentum indicators are overbought and rolling over. Downside risk is to support at $162.75. Purchases on weakness to indicated support are preferred.
Chart courtesy of StockCharts.com www.stockcharts.com
KB Homes (NYSE:KBH $17.46)
News event: Fiscal third quarter loss was greater than anticipated. Less than consensus August new home sales announced this morning added to weakness.
Technical comment: KB Homes as well as most home building stocks have a mixed technical profile. Intermediate trend is up. The stock trades above its 200 day moving average. However, short term momentum indicators have rolled over from overbought levels during the past few trading days and the stock broke below its 50 day moving average this morning. Next support is at $16.14. Downside risk on a break below support is to its 200 day moving average currently at $14.48
Chart courtesy of StockCharts.com www.stockcharts.com
Biovail Corporation (NYSE:BVF: $14.67 U.S. , TSE: BVF $16.01 Cdn.)
News event: Initiated as an Outperform by JP Morgan
Technical comment: Biovail currently has a positive technical profile. Intermediate trend is up. The stock trades above its 50 and 200 day moving averages. Strength relative to the S&P 500 Index and TSX Composite Index has been positive since May. Short term momentum indicators are slightly overbought, but continue to trend higher. BVF broke resistance this morning at $14.15 U.S. and $$15.90 Cdn. Next intermediate upside technical targets are $16.50 U.S. and $18.80 Cdn.
Chart courtesy of StockCharts.com www.stockcharts.com
Don Vialoux
Director of the Canadian Society of Technical Analysts
Comments offered in this report are for information only. They should not be considered as advice to purchase or to sell mentioned securities. An attempt to provide accurate data has been made, but accuracy is not guaranteed. Comments are from Don Vialoux and not from the Canadian Society of Technical Analysts.
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Tags - Previous posts for stock ticker: BVF, KBH, RIM, RIMM, SPTFS
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