The Canadian Banks are trying to turn up. The group has been under pressure lately, but perhaps its time to buy?
Here's BMO. The Canadian banks have not had this price action weakness in 5 years. The SCTR is bouncing from its lowest level on the chart. Nice positive divergence on the Stochastics. The PPO looks ready to break the downward trend.
RBC looks similar. Weak SCTR turning up.
TD already started the move. Trying to make new all time highs. SCTR moving above 75.
CIBC looks very interesting with a push to get above the base. SCTR turning up from a very weak level.
ScotiaBank looks great.
National Bank is making new highs so that is great price action.
If you like to buy strength, Canadian Western is kicking it up with fresh three year highs.
The banks look enticing here. Trade well.
Greg Schnell, CMT, MFTA
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About the author:Greg Schnell, CMT, is a Senior Technical Analyst at StockCharts.com specializing in intermarket and commodities analysis.
Based in Calgary, he is a board member of the Canadian Society of Technical Analysts (CSTA) and the chairman of the CSTA Calgary chapter.
He is also the author of Stock Charts for Dummies (Wiley, 2018).