Life is a horizontal fall (Jean Cocteau: French writer, designer, playwright)
I wrote a blog that was well received back in May on sideways trading stocks.
I mentioned on the blog that I quite like stocks stuck within a range because you can define your trading plan – you know upfront what your entry and exit points are. I’d recommend reading that blog to get an outline of how to define a suitable candidates.
Today, I’d like to cover a few new stocks that I have been watching in sideways patterns. I’ll also quickly review the current status of two of those mentioned in my prior blog. One stock mentioned was GE, which has broken down and is no longer in the holding pattern.
Please note: I’d really love you to put a comment on this blog if you are aware of any other well defined trading pattern stocks. Its great to share this kind of info with the TA community. As Red Green says: “We’re all in this together”!
SNC Lavalin (SNC-T)
SNC has been stuck in a fairly wide swinging range since early 2016. The stock looks attractive if considered around the low $50’s and sold around $58. Perhaps its worth the wait…
BCE (BCE-T)
The long termed chart is in an uptrend (thick black line), but the old resistance levels of around $57 from 2015 has become the floor since 2016. Resistance lies around $63. That’d be your trade. We hold a position in both our ValueTrend Equity and ValueTrend Income Platforms – which I hold personally (yes, I eat my own cooking).
Mondelez déjà vu (MDLZ-US)
Someday, MDLZ may break out. And some day, your prince (or princess) will come. Meanwhile – trading appears to be the only way to reap any money out of this zombie. This stock has been trading between $40 to $47 since early 2015. We hold this stock in the ValueTrend Equity Platform. You’ll NEVER guess where I will sell (tongue now in cheek).
More of the same for Stantec (STN-T)
Sung to the tune of “Carolina in the morning”
Nothing suits me finer than to buy Stantec at $29-er…in the morning…
Then I’d feel really nifty to sell at $36.50…in the evening…
Keith’s BNN show from last night
Here’s the clip.
Keith at the MoneyShow Saturday, Sep 9, 2017: 2 presentations
Join me as I speak at:
10:45 am: How to Profit from Fear and Greed
2:45pm: Technically trading ETF’s
Whatever your experience, portfolio size, or risk posture, you simply cannot afford to miss this event. Visit Richards.TorontoMoneyShow.com for information on registration, speakers, workshops, and more!
The MoneyShow Toronto 2017 is the premier education event for self-directed investors and active traders in Canada. Your no-cost, two-day pass will give you unlimited access to meet and hear from the most successful experts in 60+ interactive workshops covering exciting array of topics to fit your investing and trading needs.
18 Comments
My best stock this year with nice sideways pattern is XOM .I know it not that long pattern but I made most returns on it and I like safety and predictability and correlation to oil spot price .
Thanks Mike
XOM has a tight range of about 5%-$80-$84-pretty hard to play a swing on it, but certainly if you have longer termed faith its not showing any sign of breaking below $80 or so – thus, that is a decent entry point for the patient investor. Oil itself (WTI) looks like it has a bit left in it before it rolls over yet again. This may give XOM a move to that $84 top again.
I am very active on this one , in and out , 2% is good enough for me , with today good oil inventory numbers thinking to jump back in on XOM
Does BNS qualify? And how about BYD.UN until recently?
And for a change of pace, watch SJ. We have a tringle pattern and lots of money flowing in. Something’s about to break and money flow suggests positive.
BNS and BYD.Un are not range bound–especially BYD.UN which is in an uptrend
SJ looks very interesting-thanks for that Fred
Hi Keith I was watching stantec and thought it might be an entry @31.75 but it has gone up a bit then came back down. your thoughts. is there still a chance it will go up to 36 or retreat back down to 29 ish
The closer to $30 the better for a buy point. Right now at just under $32 its closer to the middle of its trading range. I will buy it at or below $30.
Hi Keith,
Thanks for the blog. Names I have traded for range include are,cls, chh ( bought today 68c again) when I have time. Names I hold that can be traded ( I think) are Brookfields ( bam.a, bip.un & bep.un ( own). The rest of names you do write about trading seasonally include CND banks( you use zeb).
You know them all but you requested for comments & I felt obliged to write.
thanks Muntazir–I’m glad that you took the time to comment!
I don’t view the Brookefield’s are sideways–it is clear that they are struggling to maintain their uptrend–too early to say but they may in fact be rounding over into a downtrend.
Keith, CVS (a frustrating stock, entry point was $90 for me) — has been doing the dance since last fall between $77-$81…..
AHA!!
Warren–you got a good one to trade there–$76-is to $82-ish on the outside is your range.
Thanks–good one
On your last BNN show a few days ago, AMGN was asked about is appears to be at the top end of a very wide trading range between 185 & 135.
Hi Keith,
Thanks for sharing those ideas. Two stocks that I noticed are currently in the bottom of a long term sideways pattern are REI.UN and HOT.UN. On the fundamental side though, I’m a little nervous to trade them with interest rates rising as REITs, I believe, are negatively correlated with interest rates.
Josh
thanks Josh
SJ : I look at this stock every so often, but completely missed the False breakout with divergence June 5th. The weekly chart looks interesting , descending triangle seems to show this trade might be to early to cal. Earnings in early Aug might be worth waiting for
Little bit of a dwontrend but it may be a trade
Do you think Pfizer has a good range in which to trade? Thanks.
Hi John–it looks like there is a lid at or just over $36 –harder to spot a repetitive floor where to buy so its not a perfect sideways pattern. Neartermed it shows rising troughs which is positive–it might get to the $36-ish level –one could consider buying at the trendline connecting the rising troughs of late…