From the desk of Tom Bruni @BruniCharting
While updating our Canadian Chartbooks this weekend, I noticed a few that stood out as offering well-defined opportunities where the reward/risk is skewed in our favor. This short post will outline these names and levels, but members can view all of our Canadian Universe by clicking here.
There aren't many stocks in Canada hitting all-time highs right now, but Rogers Communications is one of them. It's a leading stock in a strong sector, so as long as it's above 68.70, we want to be long with an upside objective of 95.25.
Click on chart to enlarge view.
Financials have been a weak spot in the market, with many long-term topping patterns taking place. Manulife Financial confirmed a head and shoulders top in September and is now retesting its broken neckline. We want to be selling into this strength as long as prices are below 23, with price objectives of 20 and 16.50.
Bank of Nova Scotia is also retesting former support after breaking down from a 2-year range in October. As long as prices are below 72.50, we want to be short with downside objectives of 64.50 and 52.
Cameco Corp. on the other hand is attempting to break out of a 3-year bottoming pattern. While this breakout may take some time, this is a name we want to be keeping on our radar into year end and buying a breakout above 17, with a target of 21.25.
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