Technical Analysis of Financial Markets

Monday, July 30, 2007

EnCana Corp. (ECA)

Operating in Canada, United States, Brazil, Greenland, France and the Middle East, Independent oil & gas explorer and producer, EnCana, seems to be consolidating into a bearish Head & Shoulders top formation after rallying 60% since year-to-date. Strengthening stochastics indicate that price action may retrace back towards the 50-day moving average beneath the underside of the broken trendline where an entry to a short position may pose minimal risk. Stop loss: close above 50-day moving average.

Wednesday, July 25, 2007

Genentech Inc. (DNA)

Biotechnology firm Genentech, uses human genetic information to engage in the discovery, research & development, manufacture and commercialisation of biotherapeutics focusing on oncology, immunology and tissue growth & repair, based in the United States. Since year-to-date, stock price has been bounded beneath the 50-day moving average and has declined 24% with RSI unable to sustain a reading above 50 in that period. However, price action may currently be forming an inverse bullish Head & Shoulders formation; seek a close above the 50-day moving average for possible trend-reversal signal. Stop-loss: close below $74.

Tuesday, July 17, 2007

Pinnacle West Capital Corp. (PNW)

Founded in 1920, Pinnacle West Capital, based in the US, operates through its subsidiaries as an electric utilities and energy services provider which also engages in real estate development and investment activities. Over the last 2-month period, the stock has sold-off 25% in value since Lehman bank cited regulatory threats within the utilities sector; see However, price action has recently pieced the descending trendline and may be forming a bullish Head & Shoulders trend-reversal formation. A long position at current prices with a stop-loss on close below the 52-week low of $39.17 poses minimal risk.

Sunday, July 08, 2007

Nicor Inc. (GAS)

Nicor engages in the natural gas distribution and shipping businesses in the United States. A recent sell-off from 52-week highs saw stock price decline some 23% in a 2-month period. However, the 3-year uptrend has remained intact which is where price action is currently trading. Enter a long position exiting on break and close below the trendline support. BusinessWeek bullish article:

Monday, July 02, 2007

McDonald's Corp. (MCD)

Over the last 12 months, McDonald's has rallied 70% hitting an all-time of $52.88. In recent news, a New York citywide ban of trans fat cooking oil which in went into effect Sunday will demand to trail alternative cooking oils. Price action is currently trading sideways with declining RSI and MACD; -implying a bearish negative divergence. Price target towards uptrend support of rally. Stop-loss: close above 52-week high.