BBDB/N trade ideas
Watch BOMBARDIER - ChannelTechnicals - Bombardier is in a parallel channel. The upper limit and 180EMA are overlapping and form a strong resistance. Price could bounce down, or break above and get a good run-up. If it happens to go up, it could go back to recent highs around 5.40. I am just waiting for a trend confirmation to get into the trade.
Fundamentals - Bombardier made good progress on their airplane sales, especially with their C-Series planes. However, in a recent article, Financial Times warned about the difficulties the company has with railways products. In addition, the Motley Fool described Bombardier as a "shaky" investment as of now.
Remember that the stock was trading as low as $0.80 in 2016. Such an improvement in this industry is huge. That is why I advise caution if you want to go long.
Trade safe!
A nice gain but I'm still holding BBD.BReasons to be Bullish : lagging span on Ichimoku Cloud is still touching price, price had sharp bounce off cloud, momentum from positive news, DMI lines crossing, Parabolic SAR just took long angle, and volume above average volume line. manage your risk accordingly
Bombardier_(TSX:BBD.B)_July_17_2018For those of you considering shorting Bombardier, I think there is still some upside left or atleast the time is not yet ripe to short the stock just yet. Granted, that based on historical performance (atleast the past 5 years) the stock has reached close to all time highs (since about 2012). Furthermore, the $5.00 mark seems to act as a key resistance level which the stock is having trouble breaching through.
However, as traders we should focus more on logic and less on intuition for better overall portfolio performance. An analysis of the Moving Averages(MA) indicate the the stock is in a uptrend. The price is above the MA, the short MA has crossed the long MA and both MA have an upward trend. In addition, the Accumulation-Distribution (AD) also has an upward trend.
With news that the partnership with Airbus has been formalised, their new line of business jets about to enter service and the train division doing well it would be unwise to short the stock until and unless the trends indicate otherwise. The greatest risk to the company is its large debt that will act as a huge burden in a rising interest rate environment.
With relations souring between USA, Canada and Europe, BBD.B is going to receive additional support from the Canadian government. Also Canadian and European Airlines are going to be prodded by the government to buy more CSeries Aircraft rather than the competing Boeing 737's. With Airbus coming into the fold and marketing the CSeries as one of their aircraft (as it has been rumoured), Bombardier seems to be well positioned to sell more planes. How much of that profit is going to go to BBD.B is a question for another day.
My prediction is that the stock is going through a period of consolidation. If you hold the stock then do not sell just yet but depending upon your risk profile you may want to determine a good exit point in case the stock price indeed goes south. If you are yet to buy the stock, this consolidation might be a good time to buy but you want to set your stop loss at a appropriate level so that you do not lose a huge portion of your capital.
Bombardier (TSX: BBD.B)_May_08_2018Bombardier has had an excellent run since the stock reached all time lows of close to CAD$ 0.65 in 2016. Currently, the stock has move either way depending on key market conditions. BBD has quite the large debt (close to $9 Billion). The news of the CSeries partnership with Airbus, their upcoming Business Jet, excellent sales on the transportation sector and sale of underutilised assets has generated considerable buzz and increased confidence in the company and leadership team. However, the coming few weeks/months will be crucial as the sale of the CSeries to Airbus is supposed to clear all regulatory hurdles this year; as well as their new business jet the Global 7000 is getting certified this year; the transportation sector is also expecting new orders esp. in BBD's home state of Quebec. If these events go smoothly, the stock might push the CAD 5-6. On the other hand, if the CSeries deal emerges as a freebie to Airbus and there is delay in the business jet entry into service coupled with any renewed tensions from the US in regards to NAFTA, the stock might fell back in the CAD$ 2-3 price range.
Nice cup and handle pattern with breakoutBombard has long been a TSX laggard but, much like blackberry, its looking at big gains in 2018 following the release of C-series that was heavily delayed on many fronts (which was not good for them) In the last weeks it has broken through resistance that was holding it back for almost 3 years at the $2.80 region and has broken out from a cup and handle formation on exceptional volume.
I'd defenetly be looking to enter long around $2.95-3.00 region as this stock has become a beauty to hold again for 2018 from a technical and fundamental standpoint.
Dynamic Support Level $BBD.BBombardier appears to have found a base in its current channel and is potentially setting up to retest recent highs. Reasons listed below:
Reasons:
- Price has held above the $3.00 level which has acted as a major level for many years
- Price is now sitting on the 100MA, which has acted as a significant dynamic support level in the past
- MACD has gone positive
- RSI turning over above moving average
- Bullish Divergence on the MACD
Waiting for a breakout above the other shown moving averages, then going long.
Swing Trade on Bombardier $BBD.BReasons:
- Price has broken above the 20 and 50 sma's which have been acting as dynamic resistance
- Price is just above the 200sma (purple) which has been acting as dynamic support/resistance
- Price has broken above trend line (dashed line) which price has been bouncing off of for the past month
- TRIX indicator has gone positive
- Price has continued to find support at a rising trend line