Chartwell Retirement Residences could pullback but there no indications of a trend reversal

Jan 27th, 2015 – Comment

The next quarterly report is scheduled for late February which might provide the push needed to propel the shares higher.


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CHS.UN-LOGO

Hey Lou,

What do you think of Chartwell Seniors right now? I’m thinking of a little investment for the dividend and some possible capital increase.

Love your reports on AM640!

Thanks,

Brian

 

Hey Brian,

Thanks for the assignment and your support! This will be the second time that I investigate the particulars associated with Chartwell Retirement Residences (CSH.UN TSX). The last examination was conducted on July 28, 2014 when the units were trading for $10.78. Steve was considering buying some shares and wanted a second opinion. The research indicated that he would be well served to accumulate the stock. First there was the golden cross that formed in January of 2014. In addition there was an intact uptrend line and the MACD and the RSI were signalling that buyers were moving back into the market. Finally it was noted that support at $10.60 was holding up.

Retrospectively accumulating the stock was the right call. CSH.UN continued to appreciate over the last six months plus investors got to collect the distributions that provided a yield of 4.34%. Another inspection of the charts will help determine how best to proceed with these units.

 

CSH.UN

The three-year chart depicts the uptrend that has been in place since January of 2014 as a golden cross surfaced alerting investors that they could realize some capital gains. In addition the 50-day moving average provided support as the shares moved higher. Finally the MACD and the RSI generated a number of buy and sell signals along the advance for those inclined to trade for profits. At this point in time the shares have hit resistance at $12.60 and found support at $12.20.

 

 

 

 

 

 

 

CSH.UN2

The six-month chart provides a close-up of the buy signals generated by the momentum indicators in October as CSH.UN bounced off support at $10.60 generating an attractive gain in ninety days. The  shares need to overcome resistance at $12.60 before we can have confidence that the stock is prepared to start a new leg up. The next quarterly report is scheduled for late February which might provide the push needed to propel the shares higher.

There are currently no indications that the move higher that CSH.UN has been enjoying is about to suffer a reversal but that doesn’t rule out a pullback from these levels.

Make it a profitable day and happy capitalism!

 

 

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