For those who are interested in my TSX watches:
DOL is one that I play frequently as a swing trade whenever a long opportunity presents. However, the TSX seems pretty late to the game in terms of the world dramas (recession, interest hikes, etc.) however the TSX Index has fallen quite a lot, with XIC (TSX Index ETF) falling 14.8% from its recent ATHs.
As is the style in Canada, we should soon be following the US's lead in terms of its massive bear market shortly and DOL will likely succumb to that reality.
DOL Currently:
- Neutral on daily RSI
- Forming a bull pennant/symmetrical triangle on daily and 1 hour time frames:
- Trending very close to ATHs
- Has two major ascending supports located immediately underneath it, one currently around 66 to 65$ range (in gren) and the other, the MAJOR one that will make or break the stock (in red), sitting at around 61. You can see why this is the make or break support in the chart below:
Verdict:
- I really do anticipate the TSX to follow the NYSE in the bear market. Historically every time NYSE went into a bear market, TSX followed shortly after and the writing is on the wall with XIC.
- I am short biased here; however, I would wait for confirmation. Let us see a break down of this bull pennant before taking a short position.
Possible scenarios shown below:
Is it possible this breaks to new ATHs?
Yes! WMT, COST and retail in general were doing well. DOL has amazing fundamentals and is technically a staple of the Canadian economy. We did see a sort of sector rotation into these necessity markets on the NYSE during the start of this bear market with WMT, COST, etc. making ATHs while everything else was tanking.
HOWEVER, if we look at other Canadian retailers such as Loblaws we can see the writing on the wall:
My thoughts and opinions!
Feel free to comment, question and/or critique!
Interesting posting a TSX idea haha, would to hear from fellow TSX traders!
Take care
DOL is one that I play frequently as a swing trade whenever a long opportunity presents. However, the TSX seems pretty late to the game in terms of the world dramas (recession, interest hikes, etc.) however the TSX Index has fallen quite a lot, with XIC (TSX Index ETF) falling 14.8% from its recent ATHs.
As is the style in Canada, we should soon be following the US's lead in terms of its massive bear market shortly and DOL will likely succumb to that reality.
DOL Currently:
- Neutral on daily RSI
- Forming a bull pennant/symmetrical triangle on daily and 1 hour time frames:
- Trending very close to ATHs
- Has two major ascending supports located immediately underneath it, one currently around 66 to 65$ range (in gren) and the other, the MAJOR one that will make or break the stock (in red), sitting at around 61. You can see why this is the make or break support in the chart below:
Verdict:
- I really do anticipate the TSX to follow the NYSE in the bear market. Historically every time NYSE went into a bear market, TSX followed shortly after and the writing is on the wall with XIC.
- I am short biased here; however, I would wait for confirmation. Let us see a break down of this bull pennant before taking a short position.
Possible scenarios shown below:
Is it possible this breaks to new ATHs?
Yes! WMT, COST and retail in general were doing well. DOL has amazing fundamentals and is technically a staple of the Canadian economy. We did see a sort of sector rotation into these necessity markets on the NYSE during the start of this bear market with WMT, COST, etc. making ATHs while everything else was tanking.
HOWEVER, if we look at other Canadian retailers such as Loblaws we can see the writing on the wall:
My thoughts and opinions!
Feel free to comment, question and/or critique!
Interesting posting a TSX idea haha, would to hear from fellow TSX traders!
Take care
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