The Canadian Technician

The Railways Leave The Station - All Aboard!

Greg Schnell

Greg Schnell

Chief Technical Analyst, Osprey Strategic

Yesterday, on a big selloff day, the railways had some serious volume as they broke out to the upside.

Here is CNR.TO

CNR 20131009
Notice the nice big green candle on yesterdays volume. You can also see the purple shaded area at the top behind the RSI has taken off the the upside. This is the SPURS. or $SPX Relative Strength.

The RSI is very solid up near 70. The breakout in price is making 52 week highs. The MACD has broken the downtrend. The SCTR jumped above 80. This is a pivotal level on the SCTR where we usually see the start of major price moves.

Lets look at CP.TO


 

CP.TO 20131009

Notice the nice big green candle on yesterdays volume. You can also see the purple shaded area at the top behind the RSI has taken off the the upside. This is the SPURS. or $SPX Relative Strength.

The RSI is very solid up near 70. The breakout in price is making 3 month highs. The MACD has returned above zero, paused and turned to the upside again. The SCTR jumped to 79.  This is a pivotal level on the SCTR where we usually see the start of major price moves.

So, it looks like an "All Aboard!"

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