Power Corp. of Canada needs to move through $32.00 with conviction

Nov 25th, 2015 – 1 Comment

Testing support along the 200-day moving average.


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POW LOGO

I’m a big fan! Here’s a couple I’m looking at Power Corp of Canada  and Walmart

Thanks,

Ken

 

 

 

Hey Ken,

Thanks for the assignment and your support. Both are greatly appreciated!

I will inspect the charts for Power Corp. of Canada (POW TSX) today and Wal-Mart Stores Inc. (WMT TSX) on Friday. This will be the second time that I probe the charts for POW. The last time was on June 9th 2014 for Susan.

The shares were trading for $29.64 and the dividend yield was 3.91%. Susan wanted to know if the stock offered a good entry point. A noteworthy feature that was cited was the break below the established uptrend line in January of 2014. The research also identified that the shares were overbought in November of 2013 and that they exhibited a topping pattern of lower highs and lower lows through January of 2014.

Finally it was noted that the stock had moved below the 50 and the 200-day moving averages. It was advised that Susan keep her powder dry and wait for evidence that POW was ready to start a new leg up. By the end of June the shares moved up and through the moving averages and made their way close to $31.00.

An updated analysis will identify how you might best manage this investment.

 

POW

The three-year chart indicates that the downtrend that started in March of 2015 came to an end in early October. The stock hit a  52-week high of $34.79 in March and retreated to its 52-week low of $26.50 in August. The shares caught a bounce off the August lows as the MACD and the RSI generated buy signals which alerted knowledgeable investors to the opportunity.

Buyers have pushed the stock back up through the 50 and the 200-day moving averages to resistance near $32.00.

 

 

 

POW2

The six-month chart pulls into focus the resistance near $32.00 which has POW testing support along the 200-day moving average. From the patterns at hand we need the stock to move through $32.00 with conviction if we are to expect an extension of the advance.

Next time I will investigate Wa-Mart.

Make it a profitable day and happy capitalism!

 

 

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