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Valued at around $121 billion, Toronto Dominion Bank (TD) is a Canadian chartered bank that offers a wide range of business and consumer services. I sorted for stocks with the highest technical buy signals, superior momentum in both strength and direction, and a Trend Seeker “buy” signal – and Toronto Dominion checks all of those boxes, writes Jim Van Meerten, analyst at Barchart.

Since the Trend Seeker signaled a buy on April 21, the stock has gained 16.2%. In fact, Toronto Dominion shares hit a new 52-week high on June 11, touching $70.80 at the open.

Among other positive technical indicators from Barchart: Toronto Dominion has a 100% technical “Buy” signal, a Weighted Alpha of +36.20, and a Relative Strength Index that is at 79.7%. Toronto Dominion has also been trading above its 20-, 50-, and 100-day moving averages, and it has made 18 new highs in the last month.

What about analyst and investor sentiment? Wall Street analysts issued six “Strong Buy,” one “Moderate Buy,” and five “Hold” opinions on the stock. There is also one “Sell.” Value Line gives the stock its average rating. Morningstar thinks the stock is fairly valued. Some 79,730 investors monitor the stock on Seeking Alpha, which rates the stock a “Hold.”

The Bottom Line

Toronto Dominion has momentum and support from both the market and individual investors. But I caution that Toronto Dominion is volatile and speculative — use strict risk management and stop-loss strategies.

About the Author

Jim Van Meerten earned a BS in Accounting and Business Administration from Berry College; a Juris Doctorate from the Woodrow Wilson School of Law; and attended post-baccalaureate and graduate courses in Business Administration, Quantitative Math, and Education at Florida Atlantic University, Georgia State University and University of North Carolina at Charlotte.

Previously he has been an accountant, attorney, adjunct professor in Business Law, Accounting and Internal Auditing, financial advisor, supervisory principal, and compliance officer. He also passed the Georgia CPA Exam, the Certified Internal Auditor Exam, and the FINRA Series 7, 24 and 9/10 exams.

He is presently an analyst at Barchart and writes "Chart of the Day," an article sent out daily that utilizes the tools available on Barchart.com, including screeners, Barchart technical indicators, and trading signals, to find stocks with compelling setups.

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