After a brutal beatdown from the politicians about pipelines, TransCanada Pipelines (TRP) stock has started to demonstrate a change in trend. From a continuous decline starting in September 2014 (near oil's high), TransCanada has recently made a 5-month high. With an SCTR ranking above 75, this is really starting to outperform its peers. One particularly strong trait is the new 6-month high in relative strength.
Currently, the 200 DMA is just above the price. If price moves through this moving average, the next level of resistance is up at $40 which is about 15% above the current price. The MACD is clearly soaring and marks a change in the momentum trend. A pullback into the mid $34 level makes an interesting entry point where a tight stop could be placed below.
I'll be teaming up with Tom Bowley on the Trading Places Webinar today at 12 Noon EST. Click here to register! Trading Places 20160205.
Greg Schnell, CMT