Sunday, November 19, 2006

Telus (TU) Analysis 11.19.2006

Upon the latest Income Trust Announcement from the federal government, price gapped down and opened below prior support. Stock is currently trading below the 34ema and the 20ema. Prior high is currently acting as support at the $48 area.

Large engulfing pattern signalling heavy selling. No buy pattern evident yet, to show that the selling has stopped. Watch the daily chart for clues of possible buyers stepping back in.

Possible 5 waves up into high. IF we have 5 waves up, THEN look for abc type 3 wave correction to the .618 fib level. Possible support area at key LIS (line in the sand) at the $27 area.

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