Telus Corp. riding a textbook uptrend

Nov 30th, 2012 – Comment

In summary there is nothing on the charts to suggest that the uptrend is at risk.


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Lou Schizas is an equities analyst, investor, entrepreneur, professor and television and radio personality – and a true believer in the happiness-inspiring powers of capitalism.


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Hey Lou,

I’m young and new to investing in stocks. I’ve been looking around for some stocks that would be ideal for growth in the long term.

I noticed that Telus has almost doubled in the last three years and have also been increasing their dividends.

What do you think of their ability to keep up their growth in the future?

Thanks,

Jason

 

Hey Jason,

 

Congratulations on taking control of your financial future and applying your skills to finding great companies offering a generous dividend. As a new investor what you want to be aware of are the basics of trend, support, and resistance. The last time I ran the charts for Telus Corp. (T TSX) was on September 11, 2008 when the shares were trading at $40.18. Chet wanted to know if some of the changes in the competitive landscape would create demand for the shares of T. It was observed that a downtrend was firmly in place, a death cross had just surfaced, and there was resistance at $42.50. The stock continued to sell off until July of 2009 when it bottomed out at $29.98. After building a base in the $30.00 range the stock started a new uptrend in January of 2010.

Another examination of the charts will help inform you of how best to proceed with this opportunity.

 

 

The three-year chart provides a text book example of a wealth generating uptrend. Worth noting is the established uptrend with support along the moving averages throughout the advance. In addition every pullback was met with buying as investors have been willing to buy high in anticipation of selling higher at some point in the future.  The next question that has to be answered is if T can get over the resistance that has formed at $65.50 and continue to move higher.

 

 

 

 

 

 

The six-month chart provides a close-up of the trading range that has developed since October with resistance at $65.50 and the support at $62.50. The RSI and the MACD are not providing any conclusive directional signals at the moment. In summary there is nothing on the charts to suggest that the uptrend is at risk. That however is not a guarantee and as with all investments it is incumbent on investors to maintain constant oversight on their investments. Everyday should begin with a review of the charts to insure that the trend is supporting your capital and that your trust has not been betrayed.

Make it a profitable day and happy capitalism!

 

 

 

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