TSX stocks on the verge of 'golden crosses' or 'death crosses'

From a technical perspective, the stock chart for Shaw Communications Inc. (SJR.B-T) is positive. The share price recently experienced a bullish technical signal called a "Golden Cross".

A "Golden Cross" occurs when a short-term moving average, in this case the 50-day moving average, crosses above a longer-term moving average, the 200-day moving average. When this occurs, it marks a potentially positive signal suggesting the upward price momentum may have traction.

Many traders suggest waiting until the 50-day moving average crosses over the 200-day moving average by a certain percentage, such as 3 per cent, to confirm the bullish signal.

In the case of Shaw Communications, the 50-day moving average (at $25.03) crossed above the 200-day moving average (at $24.93) just last week.

The stock faces overhead resistance around $28.

The shares have initial downside support around $25, close to its 50-day and 200-day moving averages. The attractive 4.5-per-cent dividend yield also provides support.

From a fundamental perspective, the Street sees limited upside potential for this stock based on the average one-year price target of $26.51, which implies the shares are fully valued.

That being said, given that the company's fiscal year end is in August, many analysts may soon be basing their price targets on their 2018 forecasts, rolling them forward from their 2017 estimates.

The consensus earnings before interest, taxes, depreciation and amortization (EBITDA) estimate is $2.17-billion in fiscal 2016, $2.22-billion in fiscal 2017, and $2.30-billion in fiscal 2018.

Below is a list identifying securities with recent, as well as potential future, Golden Crosses and Death Crosses. The death cross is a potentially bearish signal for a stock that occurs when the shorter-term moving average crosses below the longer-term moving average.

This report is based on technical analysis. Technical analysis does not replace fundamental analysis, but can help identify companies worth having a closer look at and performing fundamental due diligence research on.