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TECHNICAL ANALYSIS


When A Bank Says Buy

08/02/18 03:50:39 PM
by Koos van der Merwe

A major bank of Canada issued a list of stocks to buy.

Security:   CJT-T, HRX-T
Position:   Accumulate

When a top Canadian bank issues a list of shares, all interest/dividend bearing, to buy, are they telling you something? With US tariffs against Canada; with American political uncertainty becoming more prevalent as the immigration policy of separating children from parents is creating outrage; and, finally, with yet another resignation from the Presidential cabinet is the stock market building up for a major downturn? If so, are interest/dividend shares the way to go? Whatever the answer, caution prevails.

Looking at the list of shares issued by a bank of Canada, below are the ones that are suggesting buy signals. Don't forget, the bank looks at fundamentals to choose their buys. As technical analysts, we look for when to buy the share.

Figure 1. Cargo Jet, Inc.
Graphic provided by: AdvancedGET.
 
The chart of Cargo Jet, Inc. shows the Stochastic RSI and the RSI indicators both suggesting a buy. The Elliott wave count however is suggesting further downside, probably to $59.07 or $55.11. The PTI (Probability Index) is 52, suggesting that there is a 52% chance of this happening. Do note the head and shoulder formation that has formed suggesting a fall to $49.36 (69.44-59.40=10.04. 59.40-10.04 =49.36).

Figure 2. Heroux Devtek, Inc.
Graphic provided by: Omnitrader.
 
The chart in Figure 2 is an Omnitrader chart of Heroux Devtek Inc with a Vote line that gave a buy based on the IEOD and RSI 14-period strategies on June 18. The price suggested was $16.10 but the share price fell to $15.00 and only started rising on June 28.

The number of shares to look at suggested by the bank are 14, every one of which is not suggesting a buy at the moment, however they are shares one should place on one's watch list. Don't forget, the bank looks at fundamentals to make its choice, not technicals. The tickers below are the shares to watch, all are listed on the Canadian Stock Exchange.

SHARES SUGGESTED:
CJT Cargo Jet Inc.
ET Evertz Technologies Ltd.
GC Great Canadian Gaming Corp.
HRX Heroux-Devtek Inc.
KXS Kinaxis Inc.
MRE Martinrea International Inc.
TCN Tricon Capital Group Inc.
WTE Westshore Terminals Inc.
CNL Continental Gold Inc.
FRU Freehold Royalties Ltd.
OR Osisko Gold Royalties Ltd.
ROXG Roxgold Inc.
TXT.UN Top 10 Split Trust Capital Units



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.

Address: 3256 West 24th Ave
Vancouver, BC
Phone # for sales: 6042634214
E-mail address: petroosp@gmail.com

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