See our most recent updates for this stock;
As we recently pointed out, this stock should be sold when it reaches levels around $60. Now that the stock has completed, or is about to, a five wave sequence there is all the more reason to do so. Add to that the RSI that is now above the 70 overbought level, and a MACD that is doing nothing, why wait?
So what makes stocks go to the edge, time and time again. For RY the answer is simple that your broker cannot go wrong recommending RY (or almost any other Canadian bank). The reason is that these banks are all part of an oligopoly which in practice means that if they do do something stupid all they need to do is jack up your NSF fee and cut seniors off from free banking. This can always be done with impunity as the first mover becomes the price setter , and all others duly follow suite after a wait period sufficiently long to keep up decorum and the fallacy that there is competition. The other factor is that it is always safe to recommend a bank, especially the Royal. When, as a broker you have absolutely no idea what to say to your client and yet you have to bring home the bacon, a lot of bacon, you simple recommend this bank. In uncertain times like right now, it could be argued that these banks are a “safe haven” investment. All this explains why this stock gains, in a single day, almost as much as 10-year Canada’s do in a full year. It is still a sell.