INK Canadian Insider Index at key point

Thank you for joining us in a weekly technical look at the mid-cap oriented INK Canadian Insider (CIN) Index. Last week was fairly quiet, and the Index held the previous week's gains fairly well, shedding just 4.3 points to close at 1170.66.

RSI dipped 4.5 points to close at 49.5 while MACD rose 0.11 points to close at 1.23.

Overhead resistance lies at 1175 and, above that, in the 1180-1185 area. Support sits at 1168 (200 day moving average) and, below that, at 1150 and 1145.

Price action remains neutral as the Index remains capped by a strong resistance line dating back 4-5 months. Despite the softening of RSI and negligible increase in RSI last week, the Index continues to display signs of bullish divergence in these indicators.

That said, since the Index is bumping right up against this very established resistance line and is at the same time perched just 2.5 points above its key 200-day moving average, the INK CIN may need to make a decisive move higher quite soon in order to avoid being rejected and sent back to the bottom of its trading channel. For such a breakout to occur, bulls will want to see RSI move back above 50 and head higher into the 60s.

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