Canadian Utilities Limited (TSE:CU) – Technical Analysis
Highlighting: Canadian Utilities Limited (TSE:CU)
With American markets closed on Monday, today’s pick will focus on a Canadian equity showing positive seasonal tendencies through to November.
Of the 1652 stocks analyzed on Friday, 428 advanced, 1190 declined and the remaining 34 were neutral on the day. Losses across the stocks averaged 0.80% on volumes 38% lower than the day previous. Losses across the capitalizations averaged 0.65%, 0.84% and 0.96% for large-caps, mid-caps and small-caps, respectively. According to stochastics, 72.4% of stocks are oversold, while 15% are listed under this description according to RSI. Seek a correction of these oversold levels prior to the release of earnings results for the second quarter.
Analysis has revealed that with a buy date of April 29 and a sell date of December 1, investors have benefited from a total return of 224.62% over the last 8 years.This scenario has shown positive results in 7 of those periods.
Conversely, the best return over the maximum number of positive periods reveals a buy date of February 25 and a sell date of November 16, producing a total return over the same 8-year range of 136.14% with positive results in 8 of those periods.
The buy and hold return for the past 8 years was 116.52%.
Comments:
Very bullish activity has been witnessed in shares of Canadian Utilities and an ascending triangle pattern is being formed on the charts with a point of resistance around $45.50.This is a bullish pattern and investors should watch for a breakout above this $45.50 level.The stock recently rebounded from a level of support at $42 achieved at the end of May and has rallied over 8% in this time.The stock has positive seasonal tendencies through to November for gains exceeding 10% on average.The stock pays a 3.34% dividend at current levels and presents investors with an ideal vehicle to hide your money during these violent market swings.Watch for the breakout above $45.50 to confirm the upside move.
News Headlines for CDN UTILITIES CLASS’A'COM NON-V (CU.TO)
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Disclosure: Mr. Vialoux does not own securities mentioned in this report.
Disclaimer: Comments and opinions offered in this report at EquityClock.com are for information only. They should not be considered as advice to purchase or to sell mentioned securities.
Data offered in this report is believed to be accurate, but is not guaranteed.
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