Canadian Pacific Railway is about to experience a dive of its 50 day moving average beneath its 200 day moving average. This “Death Cross” is a bearish development. CP has also failed at this junction of its two major moving averages.
The stock has been undergoing some roll-over for 4.5 months, and this will likely accelerate as the bulls read the writing on the wall and begin to capitulate.
 However, in checking the news on this stock, I found CP released tonight some updated guidance. Here is a link to the news: CP Updates Guidance. The stock traded up 2.5% after hours. This may be a gift to the bears as a strong open will put the price right at resistance. Any weakness tomorrow should be sold as it will indicate that investors have discounted this guidance.
While the 6 mo chart is dead money, if you go back 4 years on the weekly, its quite a nice uptrend, not violated at all.
The uptrend comes in around 60.
Juice, the 4 year weekly is pretty, until the last 6 months. Then, to me, it is a beautiful, perfect short set-up. I think a 55 target gets you back to the prior base level, and is a reasonable target with good R/R.
My chart shows the uptrend broken in November, on the 4 year weekly.
Good find Woody …. one question. I notice you use a sto setting of 14, 3 while my quote.com chart uses 21, 14 as its’ standard setting. Your tighter setting advances the sell signal while mine is still unbreached …. so which is more accurate?
As you may have guessed, I’m still learning to read the tealeaves and find that there seems to be quite a divergence between chart settings depending on the tealeave reader or the chart being used. What gives?
8- I have not backtested using Stochs, so it is hard to say which is more accurate. Actually, both settings are probably equally as viable as long as the trader is very familiar with the vagaries of the indicator and is using it in a manner that fits his personality and strategy.
Personally, I find the 21,14 setting to be too slow. I prefer the MACD for the slower indicator.
Don’t forget to adjust settings when using different time frames.
I cannot emphasize enough how important it is to settle on a few indicators/settings and spend most chart analysis time using the same indicators/settings. After some time, one will either believe the indicator is helpful, and trust its signals, or not.
I have gotten to where I trust the Stochs. I also use a 5,5, but prefer the 14,3 I am also developing a feel for when to ignore its signals. That is just as important as knowing when to take a signal.
Wood .. I don’t think the 4 year is violated. You using a log scale? It looks like it had a blowoff top at 90 and is now in consolidation from its 55 – 90 move. IMO, if it goes to 55, the 4 year is broken but then again, there is good support at 55. From my perch, it looks like a buy around 60 with a stop around 55. Or for the more conservative, buy around 55.
Thats what makes a market, eh? Many ways to skin a kit-kat.