Technical Analysis Stock Picks on Photon Control (PHO), VersaBank (VB), Dollarama (DOL)

Technical Analysis on Photon Control, VersaBank, Dollarama

Photon Control (TSXV:PHO)

Photon Control (TSXV:PHO) has spent the last 3+ months consolidating within a round bottom continuation pattern. Price action has now begun to breakout from this rounded bottom pattern and above the volume by price accumulation bar. Relative strength vs. the S&P 500 has broken out above its downtrend line as momentum (MACD) begins to curl higher. This price action suggests the bulls are regaining control and the prior uptrend is set to continue.

Photon Control TSXV-PHO

VersaBank (TSX:VB)

VersaBank (TSX:VB) gave a momentum alert signal on Friday as it broke out from a multi-month falling wedge consolidation/continuation pattern. Relative strength vs. the S&P 500 is threatening to push above its downtrend line as momentum (MACD) attempts to turn higher. This price action is very bullish and suggests a continuation of the prevailing uptrend is now underway. 

VersaBank-TSX-VB

Dollarama (TSX:DOL)

Over the last 6-months, Dollarama (TSX:DOL) has been consolidating within a falling wedge continuation pattern. What caught my attention is the tight trading range that has formed during the last 4-weeks. This price action is being compressed like a coiled spring below the volume by price bar. Periods of low volatility are often followed by high volatility. A breakout from this trading range could be explosive. This also comes at a time when the MACD-histogram is making higher lows. The MACD-histogram was designed to anticipate signals in the MACD, which was designed to identify changes in the price momentum.

Dollarama-TSX-DOL

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By Dwight Galusha from SetYourStop.com

The author currently does not own any of these three names and does not plan on owning any of those three names within the next 72 hours. 

Nothing in this article should be deemed as a recommendation to buy or sell securities and is for informational purposes only. Please do your own due diligence before making an investment decision.

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