RE:RE:RE:Hopeing for recovery above $46Too bad I can't attach the chart Newcoin because in this case a picture is really worth a thousand words.
In any event, the interpretation is simple, the RSI (Relative Strength Index) is showing BCE is in deep Oversold territory, could go a tiny bit lower yet but likely would have broke through $45.40 today, but since it didn't that's a positive. And it closing at $45.86 CAD vs. hugging its low of $45.40 was another positive.
The MACD dark blue (lower) signal line is still trending slightly sideways and downward so we're not quite there yet (until it turns decidedly up), but since we didn't bottom today, I expect BCE will bottom very early next week. Any good news from BCE is all that's needed at this point and this sell off is done (barring some unforseen catalyst to effect the fundamentals even more).
In my opinion if BCE hasn't bottomed, it's close enough to be buying here. If you're a little less confident, chip away by acquiring 1/3rds of your total position. I finally bought 4K shares recently at a slightly higher price because the share price won't come back down to the $45.40 low and will probably buy another 4K next week once I get a confirmed bottom. If you buy now and keep some dry powder, you'll do fine. The bad news is for the most part already baked into the price at these levels and with sitting at a 10+ year low I don't see a lot more downside. The Fed announcing they still expect at least 3 rate cuts yet this year will help BCE from here. BCE are mad as hell at the Liberals and have already laid off over 4,000 staff which was a message to Trudeau to stay out of their way. More lays off will come if Trudeau wants to keep playing politics! Also, I see BCE has hired a new auditor for 2024 so I expect some creative accounting in the coming months. They poked the bear and the bear is not happy...if the Liberals are smart (and it's obvious they're not) they best find another bear to poke!
I've seen this same beat down action now with TRP and NEM and BCE is no different. The big guys are pounding down these large caps on any significant negative news and just like TRP and NEM will ride them right back up as soon as all the negative retail Nellie's have donated their shares. If your investment time horizon is longer than a few hours or few days then you'll do just fine buying BCE at this level. These guys have enough assets and enough fat to cut that they'll make damn sure they cover their dividend until their share price recovers and once the shares are back up the dividend won't be yielding this scary 8.6% number that has got so many retail investors rattled.
The hedge funds will keep placing their fake bids to make it look like there are masses waiting to exit the stock, but don't be fooled (watch the Level II's for the obvious signs i.e. big blocks of shares popping up on the Sell side and Buy side to control the share price...been seeing this all week). Don't use stop lose orders because they will stop you out and grab your shares (use price Alerts instead if you can't watch the stock).
Anyway, investing is risky business and some days it's like going to the Casino so it's wise to not invest more than you can afford to lose and you'll sleep well at night.
My opinion only, please DYODD.
HB77