The INK Canadian Insider Index knocking at the 1010 door

The INK Canadian Insider Index added 13 points this week and continues to consolidate in a tight range, since it first made it back to the 1000 level in early March. 'Float' might even be a better word as the Index has made progressively higher lows, albeit incremental ones, having climbed 30 points since the start of April. What should have the bull camp slightly more optimistic is that the Index has now traded above the 1000 mark for four consecutive days for only the second time since last summer. Of course, we note that the first time it happened was two weeks ago and the Index did slip back down under several days before re-emerging for its second tour above 1000.

It does seem bullish that this time around the Index is consolidating at a slightly more elevated level, about 8-10 points above its 200 day moving average.

Momentum-wise, RSI increased 15% or 8 points and has the Index in position to break out of its tight range should it hold steady or even further increase. MACD is largely unchanged up just half a point, though it is moving sideways and seems to have pulled out of its previous slight incline.

Minor resistance is at 1010 and major resistance is at 1020. Minor support is at 1000, while major support is at 990.

While it's no guarantee, as noted on our chart, most sideways consolidations resolve in the direction of the previous move. Either way, the week ahead should prove an interesting one.

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