INK Canadian Insider Index 'Bull-Bear Battle' awaits June resolution

Thank you for joining us in a weekly technical look at the mid-cap oriented INK Canadian Insider (CIN) Index. The Index made a brief foray that was turned back at the 50 and 20-day moving averages (1182-3) and otherwise looked pretty flat during the Victoria Day-shortened trading week. The INK CIN closed at 1175, for a small 3.9 point decline.

Our short-term momentum indicator, RSI, fell 2 points to 44.8 but avoided making a sub-40 plunge for the third week in a row.

The Index's MACD indicator increased by 0.7 to -1.21.

Resistance is at 1183, 1190 and of course, 1200. Support sits at 1167 and 1157 (200-day moving average).

The Index continues to bide its time before making another run at the 1200 level. I have a bullish outlook based at least partly on the fact the Index appears to be showing resilience after hitting its March lows. As far as what to look for in the near-term, an upward break in the downward-sloping resistance line capping both RSI and MACD (blue lines in lower two charts) would give the bullish case a big boost. What's more, I expect this hard fought tug-of-war between bulls and bears of the INK CIN will be resolved in June.

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