5 Key Technical Levels to Watch On TransCanada Corporation (USA) (TRP)

President Donald Trump signed an executive order last week to expedite approval of the Dakota Access and Keystone XL pipelines

Jan 30, 2017 at 11:43 AM
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TransCanada Corporation (USA) (NYSE:TRP) is just one of the many stocks that has been on the move after a series of controversial executive orders by President Donald Trump. Last week, Trump signed an order to expedite approval of TRP's Keystone XL pipeline, overturning former President Barack Obama's 2015 rejection of the proposed project. As a result, TRP stock popped to a two-year high of $49.77 last Wednesday. Nevertheless, TRP shares quickly retreated from this notable milestone -- last seen trading down 1.7% at $47.71 -- bringing into focus several technical levels to watch going forward.

Specifically, after topping out at its multi-year peak, TRP shares retreated back below the $48 level, which has capped the stock's progress since early 2015. In fact, TRP hasn't managed a weekly close above this critical level since Jan. 2, 2015. Furthermore, the shares are still staring up at the round $50 level, which is home to heavy call open interest -- and potential options-related resistance -- at TRP's February and March 50 strikes. These calls are TRP's top two open interest positions, where a collective 10,028 contracts are currently outstanding.

However, there's also several notable layers of possible technical support in play. TRP's 40-week moving average sits just underfoot -- at $45.18 -- and has provided a floor for the shares in November and December. In addition, the stock's early November pullback was halted at the $43 level, home to TRP's 2013-2014 lows. What’s more, the $42.60 mark is a 50% return from TransCanada Corporation's (USA) (NYSE:TRP) 2016 lows, and could provide another level of support.


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