Technical Analysis Report

Kalkine’s Technical Analysis Report for Canada’s Equity Segment

What should be an Appropriate Stock Picking Strategy? Should one Buy Now or Wait for Better Results or Lower Valuation Levels? These are some of the questions looming in the mind of prudent investors!

(Introducing our new technical analysis report)

Kalkine Canada Advisory Services Inc’s ‘Technical Analysis Report’ provides a new technical analysis-driven research product for the Canadian equity segment. This product is designed for investors with sufficient risk appetite and financial flexibility, who typically seek opportunities for a short timespan (2-4 weeks). This report generally aims to cover TSX/TSXV listed stocks with more than CAD 100 million market capitalization.

Which Factors Influence the Stock Price Movements?

Selecting stocks is a challenging task amid highly volatile financial market. The stock market movements depend on the sentiments of the market participants, and the two prominent emotions include greed and fear. Evolving fundamentals and macroeconomic factors such as GDP growth, socio-political stability, inflation, currency, and interest rate changes, etc. also influence the stock prices. Technical analysis is one of the two main schools of market-analysis used to assess the price direction.

Over the past one-year, S&P/TSX Composite Index produced a return of ~3.5% (on February 11, 2021); however, there are many stocks (WPRT, BLDP, SOY, TCW to name a few) which have generated a return in higher double-digit after registering a breakout on the technical chart in a short time span. Therefore, investors should consider monitoring the price trends and benefit from them. Kalkine’s technical analysis report prepared after deep-research and backtesting by a team of qualified technical experts engaged in quantitative research might be helpful in such a case!

Considering the above, Kalkine’s Technical Analysis Report Offers Below Key Features: 

1. Extensive Technical Research: This report is purely based on a thorough technical analysis using parameters including price action, trends, support, and resistances, candlestick patterns, volumes, relative strength index (RSI), simple moving averages (SMA), etc. 

2. Swing Trading Opportunity: By virtue of seizing short to medium-term gains in a stock, swing trading sometimes provides an edge over fundamental analysis as investors may not be required to hold stocks for long duration to generate desirable returns.

3. Benefit from the Leading Sectors: Kalkine recommends TSX-listed stocks from the leading sectors including Technology, Oil & Gas, Metals & Mining, Telecommunication, Healthcare, Renewable Energy, Real Estate, E-Commerce, etc. to gain from trending themes.
4. Focus on High Volume Stocks: Stocks that are trading with high volumes (typically >2,00,000 average daily volumes) are generally more liquid and can help investors to easily execute trades. Kalkine focuses on stocks with above-average volume which may have the potential to yield decent returns.

5. Better Risk-Reward Scenario: Risk-Reward ratio represents the prospective reward an investor may achieve for risk undertaken. Investors can weigh their decisions in the light of an appropriate entry-level, target prices, and a pre-defined stop loss.

Few TSX-Listed Stocks’ that Witnessed a Sharp Rally in a Short Timespan

Some of the TSX listed stocks that have recently witnessed a robust rally in a short time span include Westport Fuel Systems Inc. (TSX: WPRT) and Ballard Power Systems Inc. (TSX: BLDP) as shown in below charts. Westport Fuel Systems Inc. (TSX: WPRT), a Canada-based transportation technology company, rallied ~188% after giving the breakout of an ascending triangle pattern. The movement was also supported by an increase in volumes along with the 21-period SMA trend.

Ballard Power Systems Inc. (TSX: BLDP) is engaged in the business of design, development, and manufacture of fuel cell products. The stock generated a return of ~43% after reflecting an upward channel pattern breakout which build-up the momentum towards the upside in six weeks. The price movement was also supported by technical indicators such as RSI (14-Period), 21-period SMA, and higher volumes.

Data Source: Refinitiv, Thomson Reuters, Analysis by Kalkine Group

The returns generated by above stocks (WPRT and BLDP) were significantly higher than the returns yielded by S&P/TSX Composite Index over the same time frame.

How does Kalkine’s Technical Analysis Report Help?

Kalkine’s Technical Analysis reports are easy to comprehend with actionable insights for Canadian Equity Investors around potential themes. This report aims to cover stocks after an overall assessment of the global indices, taking cues from the major global news and events impacting the market sentiments, and analysing the Canadian benchmark ‘S&P/TSX Composite Index technically.

It must be noted that investment recommendations provided under this product are solely based on technical parameters, and the fundamental performance of the stocks have not been considered in the decision-making process. Key risks that can impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, and socio-political risks to name few.

Note: Trading decisions require a thorough analysis and technical reports in general chart-out metrics that may be assessed by investors. Past performance is neither an indicator nor a guarantee of future performance.