RY, Royal Bank update

ry oct 20 2016

In our previous most recent blog on this stock it was suggested that it could possible go as high as $86. Looking at it more closely now that would appear to be just a little too high. $85 is a more reasonable target.

The stock is making a very nice wedge and there is little room to maneuver left. The RSI, always a good indicator, is starting to move into overbought territory and the MACD has been down for half a year. Fundamentally Yellen is brooding about creating a hot economy, sort of like an incubator while Poloz is lowering his sights once again, this time acknowledging that there might actually be a housing bubble. In the mean time our market is almost back at its previous peak despite the fact that is still at half the price it was then and after a rerun of the Nortel movie in the form of Valeant. Caution is the better part of valour, so we would exit on the next tiny move up.

Below is a more refined picture including this morning’ action;

ry oct 20 2016 s