Actions taken the week of April 3
- I deposited $150.00.
- I bought 25 shares of TransAlta (ticker symbol TA.TO) for $7.63 per share. This cost me $190.75 + 0.25 cents in commission which makes it $191.00 altogether.
This leaves me with $21.90 in cash. Penny stocks, anyone?
I bought shares of TA because the monthly chart caught my eye. The daily chart displays a long consolidation that shows this stock has been trading in this price range since late November. I had been checking this stock out for a few months now. I never took action because I wanted to wait for a better setup on the monthly chart. The weekly chart is a little sloppy, but I’m not as concerned because of its strong monthly chart.
I’ll just mention that for my TFSA, I bought some shares of TransAlta Renewables (a subsidiary of TransAlta, ticker symbol RNW.TO) at $15.73. I feel like I was late to the party for this one. I just kept missing the good entries. Its price moves are around $2 in range (as you can see from the arrows on the chart below). This stock has already moved up $1.30 since its last selloff in early March. If this goes up from here, it’ll probably stall at around $16.50. We shall see.
I’m not thrilled about the monthly chart; however, the daily and weekly charts, volume action, and monthly dividends made me want in. I like subsequent consolidations because it shows a lot of consensus among investors in price areas just below my entry. This is what traders call ‘support’ because if the stock does fall below my entry point, it’ll likely land softly around the $15.00 area where a lot of people have been buying shares at since January. I’m counting on strength in numbers to hold this stock up.
The market was positive this week. If nothing out of the ordinary happens (politically/economically), the market will likely trickle up for the rest of the month.