Royal Bank of Canada and Pan American Silver Corp: Technical comments on equities in today’s news.
Notable Stocks Add comments
Royal Bank of Canada (NYSE:RY – $53.93, TSE:RY – $56.74Cdn.)
News event: Upgraded from Neutral to Buy by UBS
Source: FP Trading Desk
Link: http://network.nationalpost.com/np/blogs/tradingdesk/archive/2009/11/10/royal-bank-upgraded.aspx
Technical and seasonality comment: ‘Tis the season for analysts to comment favourably on Canada’s major banks. Royal Bank as well as Canada’s top six banks have a period of seasonal strength from the end of October to the end of December partially in anticipation of encouraging fiscal fourth quarter earnings reports for the period ended October 31st.
Royal Bank of Canada currently has a mixed intermediate technical profile but an improving short term technical profile. Intermediate trend is neutral. Support is at $52.83 Cdn. and resistance is at $58.50 Cdn. Strength relative to the TSX Composite Index has been positive since March, but neutral during the past two months. Short term momentum indicators (MACD, RSI and Stochastics) began to recover at the end of October and continue to trend higher. This morning, the stock moved above its 50 day moving average, an encouraging technical sign. A break above resistance implies intermediate upside potential to $64.75 Cdn.
Chart courtesy of StockCharts.com www.stockcharts.com
Pan American Silver Corp(NYSE:PAAS – $23.35, TSE:PAA – $24.55Cdn)
News event: Upgraded by Canaccord from Hold to Buy with a target price of $29.50.
Technical and seasonality comment: Pan American Silver has an improving technical and seasonal profile. Its period of seasonal strength during the past 10 periods is from October 25th to February 22nd. The trades have been profitable in 9 of the past 10 periods.
Pan Am Silver currently has a positive short and intermediate technical profile. Intermediate trend is up. The stock recently moved above its 50 day moving average. Short term momentum indicators (MACD, RSI and Stochastics) are recovering from oversold levels. The technical buy signal this year (based on Stochastics moving above 20% and at least a one day reversal) was triggered on November 2nd at $21.25 U.S.. Resistance is at $26.70 U.S. A break above resistance implies upside potential to $35.
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.
November 11th, 2009 at 5:23 am
Hi Don,
Does the STA offer courses in Toronto?
Thanks,
Gary J.
November 11th, 2009 at 11:01 am
Hello Don,
I miss the analysis that you were providing (or perhaps your son was) when you first started this service a few weeks ago – where you were giving specific seasonal entry/exit dates for the equities you featured. Any chance that will come back?
Thanks for the great information you keep sending our way every day.