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In the last quarter, four Canadian banks did deals in excess of $1-billion each. (Kevin Van Paassen/Kevin Van Paassen/The Globe and Mail)
In the last quarter, four Canadian banks did deals in excess of $1-billion each. (Kevin Van Paassen/Kevin Van Paassen/The Globe and Mail)

Eye on Equities

TD has major technical 'breakout' Add to ...

Toronto-Dominion Bank is trading near all-time highs and those who look to technicals for guidance may want to think twice before taking profits.

In chartist speak, TD just had a "major breakout," clearing the way for further gains that could soon see it breach the $100 mark, Phases & Cycles technical analysts Monica Rizk and Ron Meisels said in a report today.

TD has completed what's known as a large wedge formation, made up of lower highs and higher lows, seen below in the dashed lines. When this pattern is preceded by a rise, as was the case when it rallied from $62 to $75, it usually points to the stock setting up for a further rally, they said.

The recent rise to $78.94 signalled the breakout from this pattern and the start of a new major up-leg, Ms. Rizk and Mr. Meisels said. The stock continues to flirt with that level, reaching an intraday high so far today of $78.49.

The new all-time high means no one is holding the stock at a losing position. "Therefore, this is a bullish occurrence as there is no resistance to overcome," the analysts said in a report.

Technical indicators including the rising 40-week moving average and the moving average convergence divergence (MACD) confirm the bullish status, and only a decline below $73 would reverse the positive status, they said.

Upside: Point-and-figure measurements, which filter out non-significant price movements, suggest targets of $99 and $109.

Canaccord Genuity has raised its iPhone and iPad sales estimates after its latest monthly checks revealed continued strong demand for the devices in the U.S. "We believe Apple will maintain both market and value share leadership in these fast-growing markets," said Canaccord analyst T. Michael Walkley, maintaining that the iPad will sell well this year despite increased tablet competition. .

Upside: Mr. Walkley hiked his price target to $460 (U.S.) from $432.

Research In Motion Ltd. is enjoying continued solid international sales, although demand for its products is softening in North America, said Canaccord Genuity analyst T. Michael Walkley. Canaccord's latest checks indicate soft BlackBerry sales and high-end share losses to Android products at Verizon, Sprint and T-Mobile.

Upside: Mr. Walkley raised his price target to $67 (U.S.) and maintained his "hold" rating.

Desjardins Securities Inc. now expects uranium prices to average $75 (U.S.) a pound this year and $80 in 2012, up from previous estimates of $60 in each year, as demand outstrips supply. As a result, it has bolstered its earnings expectations for Uranium One Inc. over the two-year period.

Upside: Desjardins analyst John Redstone upgraded the stock to "buy" from "hold" while increasing his price target by $3 (Canadian) to $8.20.

Vermilion Energy Inc. has announced an increase in its recent offering of five-year unsecured notes to $225-million from $200-million. By the end of 2012, the company is now expected to be about 58 per cent drawn on its current credit facility, compared to 92 per cent before issuing the notes, said TD Newcrest analyst Roger Serin.

Upside: Mr. Serin raised his price target by $3 to $47.

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