TSX stocks on the verge of 'Golden Crosses' or 'Death Crosses'

From a technical perspective, the stock chart for Telus Corp. (T-T) is positive. The share price recently broke out of a symmetrical triangle pattern -- to the upside.

A symmetrical triangle is identified by a declining upper boundary line and a rising lower boundary line.

In addition, the shares recently experienced another bullish technical signal – 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, in this case 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.

The stock faces initial resistance in the $44 to $45 range. The previous peak was $45, which was the closing price on July 17, 2015. This is a strong overhead resistance level. If the stock price breaks above $45, it could rally to around $47.

There is downside support around $42. Failing that, there is support around $41, which is near the stock's 50-day moving average (at $41.28), and then at $40.

From a fundamental perspective, analysts see limited upside potential for this stock. The average one-year price target is $42.63, implying the shares are fully valued. The consensus earnings per share estimate is $2.63 in 2016, rising to $2.75 in 2017.

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.