TU - TELUS Corporation Tue 24'th Jan 2017
Strong Buy Candidate
Stock analysis for Tue 24'th Jan 2017 (Updated daily)
Buy candidate since 2017-01-19
TELUS Corporation Stock Analysis
TELUS Corporation gained 1.54% in the last trading day, rising from USD 33.07 to USD 33.58. , and has now gained 4 days in a row. It will be exciting to see whether it manages to continue gaining or take a minor break for the next few days. The price has risen in 6 of the last 10 days days and is up by 1.14% over the past 2 weeks. Volume also increased in the last day along with the price, which is a positive technical sign, and, in total, 122 363 more shares were traded than the day before. In total, 408 269 shares bought and sold for approximately USD 13.71 million.
TELUS Corporation lies in the upper part of a weak rising trend in the short term, and this will normally pose a very good selling opportunity for the short-term trader as reaction back towards the lower part of the trend can be expected. A break-up at the top trend line at USD 33.79 will firstly indicate a stronger raising rate. Given the current short-term trend, the stock is expected to rise 4.9% during the next 3 months and, with 90% probability hold a price between USD 33.18 and USD 35.46 at the end of this period.
Only positive signals in the chart today. TELUS Corporation holds buy signals from both short- and long-term moving averages. In addition, there is a general buy signal from the relation between the two signals where the short-term average is above the long-term average. On corrections down there will be some support from the lines at USD 33.19 and USD 32.42. A break down below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Thursday January 19, 2017, which indicates further gains until a new top pivot has been found. Volume is rising along with the price. This is considered to be a good technical signal.
* Golden Star Signal* is when the short-term moving average, the long-term moving average, and priceline meet in a special combination. This combination is very rare and often followed by long and strong gains for the stock in question.
Relative Strength Index (RSI)
The stock holds a RSI14 at 71 and is currently being overbought on RSI. This does not have to be a sales signal as many stocks may go both long and hard while being overbought on the RSI. It is therefore important to evaluate the history of the share as it may tell you something about the RSI-sensitiveness.
Support & Resistance
On the downside, the stock finds support just below today's level from accumulated volume at USD 31.81 and USD 31.31. On the upside the stock meets some resistance just above today's level from accumulated volume at USD 33.63.
There is natural risk involved when a stock is testing a support level, since if this is broken, the stock then may fall to the next support level. In this case, TELUS Corporation finds support just below today's level at 31.81. If this is broken, then the next support from accumulated volume will be at 31.31 and 31.23. The stock is about to test the resistance at USD 33.63. If this level is broken the stock may move faster and we often see a peak at the end of such a break, posing a good sales opportunity as in 90% of the cases you will get a reaction back to the level broken before new gains. A break should be followed by increasing volume else the break may be false and despite a break of the actual resistance level the stock falls back fairly soon.
This stock is usually traded at good volume, and with minor daily changes the risk is considered to be low. During the last day, the stock moved USD 0.61 (1.85%) between high and low. For the last week, the stock has had a daily average volatility of 1.66%.
The stock is overbought on RSI14 and lies in the upper part of the trend. Normally this will pose a good selling opportunity for the short-term trader, but some stocks may go long and hard while being overbought and the RSI is still moving upwards. Regardless, the high RSI together with the trendposition increases the risk and higher daily movements (volatility) should be expected. A correction down in the nearby future seems very likely, and it is of great importance that the stock manages to break the trend before that occurs.
Our recommended stoploss: USD 31.97 (-4.79%) ( criteria: risk and position in trend)
TELUS Corporation holds several positive signals and is within a weak rising trend. As the old saying says, "Let the trend be your friend.'". We therefore consider it to be a good choice at current levels and are expecting further gains during the next 3 months. We have upgraded our recommendation for this stock since last evaluation from a Buy Candidate to a Strong Buy Candidate.