INK Canadian Insider Index Rebounds, Faces Heavy Resistance

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Thank you for joining us in a weekly technical look at the mid-cap oriented INK Canadian Insider (CIN) Index.  The Index was heavily oversold at the time of our last update which followed the US election, and we weren't surprised to see it rally last week, gaining 24 points or 2% to close at 1111.60. 

 

The Index's short-term momentum indicator RSI soared 44% or 15 points to 49.50.  Bulls want to see the Index regain the 50 mark for the Index to maintain or add to its gains.  Playing the potential spoiler is a clear downtrend of resistance dating as far back as September when RSI last hit 70.

The Index's MACD indicator rose just 0.09 and closed at -3.42.  MACD has been pressured by a downtrend that's been in place since mid-August when it sat at a reading of +12.

It's positive that the 1080 support we laid out in our last update did indeed hold after 2 tests and secondly, that the Index did not pull back down as far as its 200 day moving average, now at 1062.  1080 is indeed a key level for it acted as a wall of resistance back in June and early July before the Index finally broke free and went on a 2-month long 6.5% rally. 

The Index's new support levels are at 1100 and 1080, while 1120 and 1117 are resistance (the 50 and 200 day moving averages are between 1117 and 1114).

We'll soon see if the flush of selling that sent the Index to 4-month lows last week was enough of a capitulation to revitalize the INK CIN.  
 

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