The Canadian Technician

The age old expression "From dollars to donuts!"

Greg Schnell

Greg Schnell

Chief Technical Analyst, Osprey Strategic

Tim Hortons double double? or double trouble?

As parents stand inline to enrol the family in the fall / winter sports activities, one thing is always in their hand.

Tim  Hortons Cup
From Timbits soccer jerseys to timbits hockey uniforms the fall season is a Tims marketing spectacular. Thousands of kid's have come home from tim's Camps and the drive through lineups get longer and longer, as the temperature drops.

SO, on a recent scan of stocks under the 40 week, low and behold, up comes a double double. (Double cream, double sugar for the non coffee drinker!) Tim's chart shows up on the radar.

THI 20120821
Starting at the top, Tim's RSI never reached 40 in the last 3 years. The stock price has not stayed below the 40 week for more than a few weeks. The MACD is still in positive territory and the full sto's have weakened slightly, but are still above 60. 

In a world of trying to hunt for pullbacks to make some dough, Time Horton's has been making new highs for 3 years. Here is the good news. A stop is relatively tight to the current price action. A stop in the $48's would protect the downside, and a runup on Tim's stock should take out the preceding high of $58.00 if Tim's can hit it's annual high in the 4th quarter as in the past three years.

Is it from $'s to donuts...or donuts to $$$'s ?

So I'm off to sit in a Tim's drive through line up behind 40 cars waiting for an x-large black, double cupped!

Good trading,

Greg Schnell, CMT

 

Greg Schnell
About the author: , CMT, MFTA is Chief Technical Analyst at Osprey Strategic specializing in intermarket and commodities analysis. He is also the co-author of Stock Charts For Dummies (Wiley, 2018). Based in Calgary, Greg is a board member of the Canadian Society of Technical Analysts (CSTA) and the chairman of the CSTA Calgary chapter. He is an active member of both the CMT Association and the International Federation of Technical Analysts (IFTA). Learn More