Quarter-to-date, financial, energy, and industrial stocks have been the leaders, while gold and silver stocks have been amongst the leading laggards.
These performance trends are reflected in the TSX Crosses report.
Highlighted in this edition of the TSX Crosses report is an energy stock that has benefited from both rising commodity prices as well as takeover speculation - Savanna Energy Services Corp. (SVY-T).
The shares recently displayed a bullish "golden cross" formation.
A "golden cross" occurs when a short-term moving average, such as the 50-day moving average, crosses above a longer-term moving average, such as the 200-day moving average. When this occurs, it marks a potentially positive signal suggesting the upward price momentum may have traction.
Many traders suggest waiting until the 50-day moving average crosses above the 200-day moving average by a certain percentage, such as 3 per cent, to confirm the bullish signal.
The opposite scenario is a bearish technical signal called a "death cross." A "death cross" is a potentially bearish signal for a stock that occurs when a shorter-term moving average, such as the 50-day moving average, crosses below a longer-term moving average, like the 200-day moving average. When this occurs, it marks a potential negative signal confirming the downtrend in the price action may have traction.
With respect to Savanna, in a Dec. 23 news release, the board of directors unanimously recommended shareholders reject the offer from Total Energy Services Inc. to purchase the company, stating that, "The offer from Total Energy Services Inc. to purchase all of the common shares of Savanna on the basis of 0.13 common shares of Total for each common share of Savanna significantly undervalues the common shares of Savanna, is not in the best interests of Savanna or its shareholders."
The prior week, on Dec. 15, the company issued a news release indicating, "Interest from other potential bidders for Savanna since the announcement by Total Energy Services Inc. in November."
From a fundamental perspective, analysts are forecasting solid gains for shareholders over the next year. The average one-year target price is $2.66, suggesting the share price may appreciate over 35 per cent. Individual target prices range from a low of $2 to a high of $3.50.
Looking at the stock's valuation, shares of Savanna are trading at a price-to-cash flow multiple of 4.8 times the 2017 consensus estimate.
Listed below are securities with recent golden and death crosses, as well as potential future golden and death crosses.