Corner of Bay Street and Adelaide streets in Toronto. July 25, 2013.Gloria Nieto/The Globe and Mail
The technical analysts at Montreal-based Phases & Cycles have some good news for shareholders of Canada's Big Six banks: the current correction will offer some buying opportunities in the short-term but then the profit party will resume.
Investors who heed technical signals may want to pay attention to the support levels outlined for the following stocks. The analysts expect each stock to test its 200-day moving average, but remain in an overall uptrend, so the current dips could be a good opportunity to increase positions.
Bank of Montreal
BMO shares are down 4.5 per cent since Phases & Cycles' last report on Dec. 3, 2013. It should find support between $65 and $67.
Bank of Nova Scotia
Scotiabank shares are down 6.1 per cent, look for support at $59 to $60.
CIBC
Down 4.8 per cent, CIBC shares should find support around $81 to $83.
National Bank
National has experienced the biggest drop since Phases & Cycles' last report, down 9.6 per cent. Look for support around $80 to $82.
Royal Bank of Canada
RBC has dipped slightly, down 2.7 per cent. Support should emerge around $65 to $66.
Toronto Dominion Bank
TD remains overbought, dipping only 0.4 per cent since Dec. 3. Look for support between $87 and $90.
Inside the Market readers can see the full report here.