TSX:TD Nearing the 200EMA on the weekly chart. Acted as a nice bounce spot every encounter in the last decade. Considering market environment I will be playing this very safe and waiting for some kind of confirmation before entering a long position. Any kind of daily closes under that range will be enough for me to pass on this trade.
Entry - $65.24
StopLoss -...
Looking at a daily close under $69.20 for a short opportunity. Price is testing a horizontal that acted as strong support twice recently. Coupled with a 100/200EMA cross and current market situation will lead to a break in my opinion.
Entry: Would like to see a strong break of support and take the first retest to the $69 area.
Stop-Loss: $70.10
Take-Profit: $67.66
This trade is based off of a relative valuation using P/B (50% weight), P/E, P/S, EV/EBITDA (all 16.67% weight) and here are my findings, all prices in CAD:
Overvalued:
RY with a target of $94.30 (-4.00%)
TD with a target of $70.95 (-3.10%)
RY and TD also have the largest amount of Home Equity Lines of Credit on their balance sheets and these will perform poorly...
Shares of TD appear to be pulling back to test a breakout level at ~$53.50, which coincides with a rising channel bottom. I'm a buyer at that level and will be targeting ~$66 on the upside, or +23% from here. In a rising rate environment and given the technical setup, I expect shares to outperform over the next several months.
Ended the day off with a huge hammer signalling a move up, MACD is also making moves for a crossover, TD could possibly be making a move up to test the strong resistance @ $75.
Be careful though, TD is currently in a bearish state, the resistance has already been tested a total of three times, forming a triple top. However, I think a scalp here is certainly...
Short TD
- lots of upper wicks on daily is smart money selling into strength
- bollinger bands tightening means move is coming soon
- retest of red breakout line before moving up higher (see attached chart)
Just a note - the better trade would be to try to grab some shorts once price hits the lower line of the blue channel.
