Castanet.net - Rallies & Reversals

Industrials start moving
The Industrials sector closed at $113.12 on Friday April 21, 2008. In the last year, the high was $128.53 on July 18, 2007 and the low occurred on January 22, 2008 at $91.22. The drop in price from the peak to the trough was –25%, which represents about a 10% under performance relative to the TSX and the S&P 500. In the last 3 months resistance has been at about $114 represented by the upper line and support has been rising represented by the lower line. A move through $114 signals a potential buying opportunity and more upside while the last significant support is at about $102. Could this be the break in resistance for Industrials to really get moving? Some companies, you may be familiar with that make up the Industrial sub indices are BFI Canada Income Fund, Bombardier Inc., CAE Inc., Canadian National Railway Company and Canadian Pacific Railway Limited.

The Industrials sector closed at $113.12 on Friday April 21, 2008.



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Posted: Apr 22, 2008 / 4:30 am Story# 38832 / Contributed

About the Authors

David Allard has 16 years experience in the financial services industry. He specializes in creating and managing integrated and comprehensive wealth management solutions for affluent clients. Most recently David was a Portfolio Manager for a leading Canadian investment management and private banking firm. He graduated from the University of Manitoba with a degree in Economics. He also completed an MBA degree. David is a member of the Chartered Financial Analyst (CFA) Institute and a founding member and past president of the Okanagan CFA Society. David resides in the Okanagan with his family. His interests include golf, tennis, mountain biking, skiing and triathlons. Over the years, David has volunteered with the Canadian Cancer Society, United Way and Big Brothers.

Email: david_allard@scotiamcleod.com

Website: http://www.yourlifeyourplan.ca

The views expressed are strictly those of the author and not necessarily those of Castanet. Castanet presents its columns "as is" and does not warrant the contents.

These articles are for information purposes only. It is recommended that individuals consult with a financial advisor before acting on any information contained in this article. The opinions stated are not necessarily those of Scotia Capital Inc. or The Bank of Nova Scotia. ScotiaMcLeod is a division of Scotia Capital Inc., Member CIPF.

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