Canadian Pacific Railway Limited, through its subsidiaries, operates a
transcontinental railway in Canada and the United States. The company
provides logistics and supply chain expertise services. It transports
bulk commodities, including grain, coal, fertilizers, and sulphur; and
intermodal traffic comprising retail goods in overseas containers that
can be transported by train, ship, and truck, as well as in domestic
containers and trailers that can be moved by train and truck. The
company also transports merchandise freight consisting of finished
vehicles and automotive parts, chemicals and plastics, crude oil, and
forest products, as well as metals, minerals, and consumer products.
Take a look at the 1-year chart of Canadian (NYSE: CP) with the added notations:
CP started its current decline in April, but in August the stock
started a sideways move. During the sideways move, CP tested the $130
level (red) as support on two separate occasions, thus creating an
important 52-week low support at that mark. Now that the $130 level has
been broken, the stock should be taking another significant leg lower.
The Tale of the Tape: CP broke a key level of support at $130.
A trader could enter a short position on any rallies up to or near $130
with a stop placed above the level. If the stock were to break back
above the $130 level, a long position might be entered instead.
No comments:
Post a Comment