RY – Royal Bank of Canada
RY – Royal Bank of Canada
Date: 21 May 2026
Sector: Finance / Banking
Exchange: TSX
TradingView link: https://www.tradingview.com/x/7w1z6nMZ/
I’m going to start on the monthly timeframe for this particular stock.
Royal Bank of Canada first floated back in July 1996 at roughly CAD $8.10. Today, the stock closed at approximately CAD $257.34, representing a pretty meteoric rise over the long term, especially for a banking stock.
Looking at the monthly chart, there are really only a handful of instances when the structure temporarily broke and lower lows formed. In fact, I can identify roughly three occasions where the stock briefly broke structure and printed yellow bars. However, importantly, the weakness never persisted on each occasion.
Instead, buyers stepped back in, the stock regained momentum, and the price continued pushing toward fresh all-time highs.
One particularly interesting point is how resilient this stock proved compared to many US banking names. While it did experience pullbacks during periods of market stress, it recovered relatively quickly compared to many US financial institutions and subsequently continued higher toward new all-time highs.
Since the break of the U-shape around the $180 level back in August 2025, the stock has experienced a rapid advance, eventually reaching the current ~$257 area.
If we zoom into the weekly timeframe, we can see that there was a relatively brief consolidation period between 5 January 2026 and 14 April 2026. During that time, the price traded broadly sideways between roughly $215 on the downside and $240 on the upside.
Eventually, the price broke free from that range and then came back to retest the previous resistance from above. Importantly, price did not break back below the box. Instead, it formed a higher low just beneath the $240 level before pushing back higher once again.
After reclaiming the range highs, price retested the breakout from above and then continued pushing toward fresh all-time highs.
For me, the important signal came when we achieved four clean closes above the $249.92 breakout level. At that stage, the stock fully met my criteria, and I entered the trade.
For anyone else looking to enter now, I think it is fair to say that the stock has already confirmed the breakout and, on the balance of probabilities, appears likely to continue trending higher.
To enter at this stage, though, you would most likely need to wait for a 4H pullback setup.
Entry trigger:
4H pullback entry
Initial stop loss:
Last 4H swing low
Multi-timeframe correlation
3M: Blue candle
1M: Blue candle
1W: Blue candle
1D: Blue candle
4H: Blue candle
When do I tighten the stop loss?:
Last 4H swing low
Potential target range (daily):
Activated price targets: None
Am I in this trade: Yes
Current return (R multiple):
+0.10R