SanDisk, Northern Trust, Canadian National Railways, Gold, U.S. equity markets: Technical Comments on Equities in Today’s News
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David Rosenberg raises concerns about U.S. equity markets following yesterday’s technical action.
FP Trading Desk link:
Technical comment on S&P 500 stocks: Interesting technical trading activity in U.S. equities this morning by stocks influenced by release of third quarter earnings reports. Selected stocks involved with “blow out” earnings have responded favourably. Best example is SanDisk Corp. (NASDAQ:SNDK) – $23.59 It broke resistance at $23.20 to reach a reach a 15 month high. On the other hand, a variety of S&P 500 stocks responding to close to consensus earnings estimates released overnight including Northern Trust (NASDAQ:NTRS) – $54.04, Altria Group (NYSE:MO) – $19.35, Eli Lilly & Co. (NYSE:LLY) – $34.10, Wells Fargo & Co. (NYSE:WFC) – $30.32 and Boeing Co. (NYSE:BA) – $51.75 quickly moved lower. Traders are selling on news.
Chart courtesy of StockCharts.com www.stockcharts.com
Chart courtesy of StockCharts.com www.stockcharts.com
Canadian National Railway Co. (NYSE:CNI) – $51.69, (TSE:CNR) – $53.94
News event: Third quarter earnings exceeded consensus
Technical comment: Share prices of Canadian companies reporting better than expected third quarter results also are coming under profit taking pressures this morning. Canadian National Railway currently has a positive intermediate technical profile. However, short term technical parameters are suggesting caution. The stock unsuccessfully tested resistance at $55.39 Cdn. Short term momentum indicators are overbought and rolling over. Downside short term risk is to support at $50.79 Cdn.
Chart courtesy of StockCharts.com www.stockcharts.com
Scotia McLeod predicts that gold could hit $1,250 U.S. by 2011
FP Trading Desk link:
Technical comment: Gold recently completed a modified long term reverse head and shoulders pattern on a break above $1,033.90 U.S. per ounce. Long term technical target based on this pattern in $1,300 U.S. Seasonal influences on gold are positive from the second week in July to the second week in October and from the end of November to the beginning of February. The former period is coming to an end and short term technical indicators have pending sell signals.
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.
Tags - Previous posts for stock ticker: BA, CNI, CNR, LLY, MO, NTRS, SNDK, WFC
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