There are three basic approaches to analyzing stocks: the fundamentals, the technicals, including charts and indicators, and a "quant" or quantitative approach. Successful investors, I believe, tend to blend these approaches, as each have their strengths and weaknesses. Consider the old Mideast saying: "If you truly seek wisdom, you will visit all the tents in the marketplace."
Canadian Pacific Railway (CP) was downgraded by TheStreet's Quant Ratings service, and the chart, above, is pretty bearish. We can work together! CP made a peak in late-April last year. The On-Balance-Volume (OBV) line has been pointed down since April. The moving averages' (50 and 200-days) areas are bearish with their negative slopes. The Moving Average Convergence Divergence (MACD) oscillator is bearish with readings below the zero line.
In this longer-term chart of CP, above, we can see that rallies in CP failed at the underside of the 40-week moving average in early 2015. The average has been pointed down for months. Prices have broken the 2013 lows, with the OBV line and the MACD oscillator pointed down.
The downtrend in CP is likely to continue, and the next support on the chart above is the $80 level. Is Gordon Lightfoot calling?