I have a background in stock market & in stocks the entire game is dependent on forseeing the future price of a share / commodity ...and generally 2 types of anslysis are used namely fundamental analysis and technical analysis .
Fundamental analysis looks at the inherent strength of the company by looking at sales & profitability growth rates & other factors of the business environment like cost of capital,competition and various ratios like price to earnings and many more.
It requires in depth study of the whole business dynamics & deep understanding of company's fundamentals.
Technical analysis completely ignores any of the above and simply looks at the past share price movement data to forecast the future prices.
So people look at either one of the way to buy/sell....it is not unlikely that a share that may be overpriced by fundamental analysis,and thus a sell recommendation is a buy recommended stock in technical analysis purely on price trend.
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the fundamental reason why the cut off should come down is that Canada needs lot of fsw immigrants & the supply is surely short vs demand....and ppl with400+ is not abundant in supply & like billHyte explained the lower ita is merely because of the resource constraint at cic which is being addressed by PMs orders recently. Once the no of ITAs increase even by 10-20% per draw,we will see a faster decline with only 50000 ppl totally in the pool against year on year target of 300000 landed immigrants (of which a major feeder is fsw economic class EE )target by govt.
Going purely technically,the share price that is the cut off was in a downward trend from highs of 600s last year and was steadily coming down and hit the ever lowest 413,when some external factors ( a long delay in June & July on account of system & policy updates) disrupted the trend and helped the price to trace back a portion of the downfall that had happened...the retracement took it to a recent high of 449 and then tried to test the high again but could only go upto 441 & couldn't sustain those high price levels in subsequent draws despite increased demand from increased rate of new entrants into the pool...it slowly is showing getting back into resuming the original downward trend...if anyone sees strong points that will reverse a trend,ie. a reason which will help the price to break the resistance point of 449 and start an upward trend,the price will continue to fall and I give my recommendation as below.
CRS : current price 434 recommendation : sell with short term target of 400 ( 3-6months )
with a long term target of 380 (1 year)
supported by the ongoing downward trend & the fundamental reasons explained in first part
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yes,I'm not much busy these days...