Some further updates on recent commentaries. We had observed that TSLA encountered significant resistance at the area of previous highs. What was more compelling was the weekly candle that resulted from the price activity. As we noted, it appeared to be a doji bar which indicates reluctance and indecision for prices to continue in the established direction. Since then, TSLA has slipped from the 270’s to the 240’s but candle formations have yet to indicate that a bottom has been reached. The first nominal target will be the shorter term 50 period moving average near the 220 area.
MS, Morgan Stanley was used as an illustration of the activity of the money center bank stocks, all of which had significant run-ups after the Trump election. The candles showed that some indecision had taken over the price action of all of the bank stocks. While there has not been a significant decline since that commentary, prices have indeed stalled here as it appears that traders are looking for the next direction. We will stay with our presumption that price action has peaked and expect that prices will do well to maintain present levels over the next few months.
Finally, PHX was a speculation on the activity in the smaller junior oil space in the Toronto market. With the retracement of the TSX in general and in particular with the mining, base metals and junior oils, PHX has lost all of its interesting momentum, notably with the steep decline in the SCTR rating. Accordingly, we exit.