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Air Canada three-year chart Add to ...

The three-year chart paints the picture of a stock that ran hard and then pulled back aggressively. The retreat has seen the shares breach support along the uptrend line and the 50-day moving average. As noted in the October analysis when a stock moves up in a near straight line it often fails to build any significant support which means when the selling starts investors can’t find levels at which they feel confident to hit the buy button.

The RSI and The MACD provided a sell signal in December followed by a buy signal in early January of 2014 and a sell signal at the top in mid January. What is noticeable is that AC.B has given up nearly $4.00 from the 52-week high and is attempting to build a base at $6.00.

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