Stock chart patterns and technical analysis (TA) explained simply. Disclaimer: This blog and all its contents are for educational and entertainment purposes only. Do not trade or invest based on any information seen on this blog. Please read Terms of Service. The K E Stone blog sites (Keybot the Quant) are blacklisted by Google, so enjoy the ad-free experience, and only use the Donate button when supporting the sites.
EnCana is a play in the natty and oil patch. DVN is another one that has similar characteristics to ECA. Weekly and daily charts are positively diverged with falling wedges and oversold conditions. ECA may be a slightly trickier trade since it has been stumbling sideways on a longer term basis. Keystone is looking for a positive divergence bounce in ECA moving forward and is currently long. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.
Interesting Weaver. ECA and DVN should base here and recover. The story is interesting for Canada and Australia since these are commodity currencies. The wine was flowing like water when the mines are operating full tilt and the demand for raw materials is off the charts but with China slowing, these currencies and many of the stocks which are miners, commodities, oil, gas and materials are hit. In trading, stocks are beaten down in anticipation of worsening data so as the global news continues to be bad, and China may collapse a la the housing market, but typically stocks base and recover as the news remains bad since they have already been beaten down a long time.
Thanks for all the charts this morning - and for including the odd Canadian company. Encana is paying a dividend rate of over 4.6% now too.
ReplyDeleteInteresting Weaver. ECA and DVN should base here and recover. The story is interesting for Canada and Australia since these are commodity currencies. The wine was flowing like water when the mines are operating full tilt and the demand for raw materials is off the charts but with China slowing, these currencies and many of the stocks which are miners, commodities, oil, gas and materials are hit. In trading, stocks are beaten down in anticipation of worsening data so as the global news continues to be bad, and China may collapse a la the housing market, but typically stocks base and recover as the news remains bad since they have already been beaten down a long time.
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