Weekly Commentary

Last week has certainly been interesting... With the drop in all world markets mostly caused by the problems Japan, we have seen many good stocks take hits of 20 or 30 percent drops and more over the last few weeks, just to see a good portion of them recovering almost as fast as they have dropped. This has really given us many opportunities in different sectors so its time for you to be even more rigorous and disciplined in doing your daily and weekly scans. There's a bunch of oversold stocks that are showing up on my scans and I can't possibly write about them all!

We've had an excellent week in our little chat with more and more people joining us just to exchange stock comments and general fun times. Drop by if you have a chance and feel free to ask questions in it. I've put it up for people to ask me questions and for you to introduce yourself to the community. You can find the chat page by going to the web site at www.ta-picks.com and place your cursor over the HOME button. A drop down menu will show up with the Social Chat option.

It's finally here and I've been working all weekend on getting the new course (Technical Analysis and its Applications) uploaded to the server and making sure all the links are working properly. I am sad to say this job was not completed over the weekend and will most likely run into the end of the week. However, I am still very excited on having completed the course and now making it available to you. I've tried to go the extra mile and I've packed it full of information that will make a nice continuation course from the first one. Read more about it at the bottom of the newsletter or drop by the web site and read up the full description of the course. Thank you to those who have already purchased the course, yes I got a few orders the day I posted the write up on the site, your user name and password will be sent to you shortly once everything is linked properly.

Seaview Energy Inc. (TSX-V: CVU.A)

Seaview Energy has come back on my radar again. The last time I spoke about Seaview Energy was back in November when I suggested it was a good range bound trading stock, see November 1st newsletter here. That $1.00 entry was sure nice and it only took 7 days to hit my target of $1.20 for gains of 20% and as expected it did pull back... But not to the level I thought it would. Instead it held the 200 SMA line and this became the turning point for Seaview Energy.

It recently had a nice run to $1.50 before retreating back to the 200 SMA line again. This would have been the perfect entry again but we can't catch them all! However, I don't think this play is over yet. It is heading north again and Friday's strong candle followed by what seems to have been huge accumulation the day before, is hinting that we could see new highs soon.

From a technical perspective, it has held the 200 SMA line on its second run to it and had formed a long-term upwards trend channel. The yellow line is the separator between the upper and lower channels. What I see is that it will test the $1.40 mark again and hopefully pas it again and stay in the upper trend channel. Indicators are hinting that this is a strong possibility. Entry here should give you a target of $1.50 for gains of 11.1% in a short period if $1.40 goes.

Air Canada (TSX: AC.B)

Air Canada has been in a down trend since last November and dropped outside of the trend lines last week to close the week at $2.48 which is right on a support line. Indicators are clearly oversold at this point in time and it might be ready for a rebound. Watch this one closely this week, it might surprise us with a move to the upper trend line.

What would trigger an entry here is a cross back into the trend channel on good volume. Any failure of the support line and it's game over as the next support is at $2.15. I have set and alert in QuoteTracker to notify me when the share price crosses the lower trend channel on an upwards movement. If you look at the steep drop in the Slow Stochastic indicator, this may indicate we need a rest period before it makes a turn upwards, and by the chart, we still have about a week to go before it reaches the apex of the support line and the down trend line. Once this starts to move upwards, I would expect it to take a week or two for it to hit the top trend line. Right now that seems to be around $3.08 but with time, that target will get lower. Possibly the 50 SMA line as a test here?

Redhawk Resources Inc. (TSX-V: RDK)

Redhawk has recently touched its 200 SMA which was also a support level and is now at a minor resistance level with Friday's close at $0.70. Indicators are showing oversold and have begun to turn upwards. Looking at the chart it is clearly posting a down trend with the last three upward thrust and failure to post higher highs each time. What I am hoping to see on its next move up is a break of the down trend line. Entry at this level with a stop loss just below support of $0.65. First target would be the top of the trend line which should be about $0.78 by the time it gets there for gains of 11.4%. Next target should it break the top trend line would be $0.93 for gains of 32.8%. If you look at the yearly chart, this is clearly a consolidation period before its next move up.

Avion Gold Corporation (TSX: AVR)

I talked about Avion in my February 14th newsletter, see commentary here, where I talked about it doing an Ascending Triangle but I did not think it would break to the up side. It wasn't much longer after that writing that we saw it post an Indication Candle and the price followed suit in no time to test the support area at $1.43. Last week we saw some nice price movement with it gaining 15.3% on the week and I believe the volume over the last few days is a clear indication of better times to come for Avion Gold.

For now, I would take an entry as the price move above the orange long term trend line, around $1.80 right now. First target is to re-challenge its 52 week high at $2.08 for gains of 15.5%. From there the next target is at $2.40 making a total of 33.3% gains expected on this play. I would think this would be a 2 or 3 week swing trade.

Technical Analysis and its Applications

This is the second course in our educational series and builds upon the knowledge learned from the first interactive course Fundamentals of Technical Analysis. A must for anybody who has started their journey in Technical Analysis or wants to advance their knowledge and skills in it, this course brings your understanding of how to read and interpret charts to new heights by introducing techniques to correctly identify charts patterns, price movements and technical indicators that when combined together will provide you with good entry and exit points for the perfect trade.

Did you ever wonder why a stock seems to be 'stuck' in a certain area before a making substantial move? Or why volume on a daily chart drops for a period of time then spikes with a price move a day or two later? These movements are common and more often than not, they are because of technical indications that trigger buy and sell orders from other Technical Analysis and automated computer trading programs. By understanding these patterns and what triggers the move, you'll be able to trade on a technical basis and consistently have successful trades.

Don't let another week or month of trading go by without taking time to invest in yourself first. Our information packed Technical Analysis and its Applications course is only $139.95 and this comes with our 30 day money back guarantee. If you are not 100% satisfied with the course, we will refund you all of your money, no questions asked.