Bull of the Day: TRP. Two Must-See Charts

Subscribers to Oxford Resource Explorer own Transcanada Pipelines (TRP). TRP is a Canadian/North American pipeline company with a market cap of $31.3 billion and tens of thousands of miles of pipeline. 

We're seeing a potentially very bullish set-up here.

First, let's look at a longer-term (7-month-long) chart ...

(Updated chart)

You can see that TRP has been moving higher since mid-March. Now, it is testing its big downtrend.

Now, let's take a closer look ...



(Updated chart)

You can see a few things here ...

• The volume on up days is better than volume on down-days. That's a good indicator of bullishness.
• TRP seems to be forming an inverse-head-and-shoulders pattern. We won't know until it confirms a break above the "neckline" of the pattern (that orange dotted line).
• A breakout above that neckline would give us a target of $49 a share.

TRP currently sports a dividend yield of 3.8%.  I think the hullabaloo over the XL Pipeline is overdone. TRP has a lot of good things going for it. 

Just something to consider. Don't buy something just because some dude on the Internet likes it. Do your own due diligence.