T,Telus

In our last blog, back in February , we suggested that this stock was a sell even if it had not yet reached its full potential. It has now and therefore we would definitely sell at this time (we were buyers at $31). The simple reason is the clarity of the chart which has a similar ending as EMP.A (Sobey’s). Here are the charts;

t 2011 lt 2011 s

The argument is simple, as always. Looking at the Bigchart it is clear that for the past 20 or so years this stock has only traded above it’s present price for maybe 3/4 months at best. That obviously does not preclude it from doing so in the future, but clearly if you are a buy low/ sell high investor, you start of with 3 strikes against you. The stock is sort of triple topping and Head & Shoulder types might see something there. From an EW perspective the dead giveaway is the diagonal (always) 5th wave that the stock has been tracing out since August. This is an exhaustion pattern that quickly retraces back at least to it’s base, and probable  much further.