Abercrombie & Fitch and EnCana: Technical Comments on Equities in Today’s News
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Abercrombie & Fitch Co. (NYSE: ANF) – $39.48
News Event: Reported higher than expected earnings
Technical comment: Abercrombie & Fitch currently has a positive intermediate technical profile. Intermediate trend is up. The stock recently bounced from near its 50 day moving average. This morning the stock broke above resistance at $37.80. Strength relative to the S&P 500 Index has been positive since July. Short term momentum indicators (MACD, RSI and Stochastics) are overbought, but continue to trend higher. Intermediate upside potential is to $44.60.
Chart courtesy of StockCharts.com www.stockcharts.com
EnCana Corp. (NYSE:ECA, TSE:ECA) – $55.17U.S.,$58.93Cdn.
News event: Upgraded by Raymond James from Market Perform to Outperform
Source: FP Trading Desk
Technical comment: EnCana currently has a deteriorating intermediate technical profile. Despite an analyst upgrade this morning, the stock broke support at $59.00 Canadian. Its intermediate trend changed from up to neutral. Strength relative to the TSX Composite Index has been negative since May. That’s typical of most major Canadian based energy stocks. Short term momentum indicators (MACD, RSI and Stochastics) are trending lower from overbought levels. Intermediate downside risk is to $53.25 Canadian.
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 14th, 2009 at 11:10 pm
Don,
I do not see any “By the numbers” postings anymore. Have they been stopped ?
Appreciate your response.
Thanks
November 15th, 2009 at 9:02 am
“By the Numbers” has been discontinued until further notice.
November 15th, 2009 at 7:17 pm
Don,
Disappointed after reading your response.
Please let me know if such analysis is posted elsewhere.
Thanks
November 16th, 2009 at 6:32 am
Hi Don,
Thank you for the update on ECA. ECA, MFC and SLF are giving me reason to question ETF’s. Would we not be better off just going with SU,CNQ or RY,BNS instead of XEG or XFN.
Thanks,
Gary
November 16th, 2009 at 8:43 am
Hi Gary. It’s a matter of investment preference. ETFs offer diversification not offered by ownership of individual equities. Costs usually are lower (e.g. lower bid/ask spreads)and liquidity usually is better with the more active ETFs. On the other hand, risk/potential return is higher with individual securities. See additional information about costs/benefits of ETFs in the education section of this blog.