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Emera, Inc. A Buy?

09/23/14 02:35:23 PM
by Koos van der Merwe

Is investing in clean power the way to go in the future?

Security:   EMA-T
Position:   Buy

Emera, Inc. (EMA-T) is an energy and services company with headquarters in Halifax, Nova Scotia, Canada. The company invests in electricity generation, transmission, and distribution. The company's aim is to provide clean energy to the market. They are operative in North America and in four Caribbean countries. Approximately 80% of their reported net income in 2013 came from regulated investments.

Figure 1. Omnitrader chart showing a buy signal.
Graphic provided by: Omnitrader.
The chart in Figure 1 is an Omnitrader chart that shows a buy signal given on the Vote line on September 11, 2014. This was triggered by the relative strength index (RSI) 12-period strategy shown in green below the Vote line. Note that the indTDIJak indicator has not given a buy signal, but is close to giving one. Also note how the share price dropped after the buy signal was given and on strong volume. The two days that followed on weaker volume suggested strength.

Figure 2. Chart showing the Elliott Wave count.
Graphic provided by: AdvancedGET.
The chart in Figure 2 shows an Elliott Wave count suggesting that the share price is tracing a flag pattern for a WAVE IV. The pattern is suggesting a target of $40.01 (35.74-28.98=6.76+33.25=40.01) for a WAVE V. The chart is also showing that a JM Internal Band sell signal was triggered on August 29, 2014. A JM Internal Band is a 15-period simple moving average (SMA) offset by 2% positive and 2% negative. A move above the upper band suggests a buy and a move below the lower band suggests a sell. Note the RSI indicator which gave a buy signal on August 1, 2014, rose and then fell without rising above the 70 horizontal line and giving a sell signal.

EMA-T has given a buy signal based on an RSI 12 period strategy. Those traders who are prepared to take a risk with a stop that is close could buy the stock at the current price. Investors, however, should wait for a JM Internal Band strategy buy signal.

Koos van der Merwe

Has been a technical analyst since 1969, and has worked as a futures and options trader with First Financial Futures in Johannesburg, South Africa.

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