225Research

225Research strives to find strong investment opportunities and aims to provide in-depth and insightful analysis of these opportunities for our readers.

Trading Ideas

Charts to watch- September 2- 6th

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Heroux-Devtek (HRX on the TSX)

HRX looks to bouncing off a tread-line of support with a strong Hammer candle indicating buyers appearing to keep the uptrend intact. The 200 MA is acting strong here as well, as another indicator that the chart is bouncing off of, and still trending up. the downward movement starting in may is looking as if the stock is breaking it, meaning although some sideways consolidation is likely, the strong momentum in this name since December may indicate a new leg up.

 

CPG

Crescent Point Energy (CPG on the TSX and NYSE)

Crescent point has been building a strong bottom, trading sideways throughout the year, while many industry peers keep making new bottoms. the downtrend has been broken and would expect for it to continue to trade sideways until a move above the 2 immediate levels of resistance and than a move above the previous high in April. however if investors are patient they can buy here and wait for the breakout or breakdown, setting stops to mitigate downside risk around the previous heavy support.

 

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Dexcom (DXCM)

Dexcom has shown strong relative strength by breaking out in a weak August. The name is on a strong short term and 4 month uptrend, which has shown no sign of breaking both. the breakout is constructive especially with the strong trading base the name has been in since around this time last year, allowing for the stock to digest its large gains for potentially another leg up. all indicators remain strong, and we believe this has a good chance of attracting capital looking for a mix of growth, momentum, and leadership, especially as some market leaders such as the FAANG stocks sit around even on a 1 year basis.

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Gibson Energy (GEI on the TSX)

This is about a rising channel which the stock has been in for the better part of a year and a half. Now is a good opportunity to accumulate at the lower end of the channel for a counter channel trade or a long hold, especially considering the strong dividend it sports.  As well, the name has continued to outperformed other energy transport names, making it more likely that the incremental dollars leaving the bond market in search of yield will be much more likely to flow into GEI than peers.