INK Canadian Insider Index rejected at 1200, falls 9 points

Ad blocking detected

Thank you for visiting CanadianInsider.com. We have detected you cannot see ads being served on our site due to blocking. Unfortunately, due to the high cost of data, we cannot serve the requested page without the accompanied ads.

If you have installed ad-blocking software, please disable it (sometimes a complete uninstall is necessary). Private browsing Firefox users should be able to disable tracking protection while visiting our website. Visit Mozilla support for more information. If you do not believe you have any ad-blocking software on your browser, you may want to try another browser, computer or internet service provider. Alternatively, you may consider the following if you want an ad-free experience.

Canadian Insider Club
$299/ year*
Daily Morning INK newsletter
+3 months archive
Canadian Market INK weekly newsletter
+3 months archive
30 publication downloads per month from the PDF store
Top 20 Gold, Top 30 Energy, Top 40 Stock downloads from the PDF store
All benefits of basic registration
No 3rd party display ads
JOIN THE CLUB

* Price is subject to applicable taxes.

Paid subscriptions and memberships are auto-renewing unless cancelled (easily done via the Account Settings Membership Status page after logging in). Once cancelled, a subscription or membership will terminate at the end of the current term.

Thank you for joining us in a weekly technical look at the mid-cap oriented INK Canadian Insider (CIN) Index. The Index looked to be building up a healthy head of steam in our last update. Its newly acquired momentum helped it charge toward the 1200 level, but the major resistance zone swatted the Index away with ease, and the INK CIN endured a quick free-fall to its 200-day moving average at 1157. The Index ended up bouncing 20 points at week's end to finish at 1178.90 for a loss of 9 points on the week.

Our short-term momentum indicator, RSI, fell 4.5 points to close at 46.84. RSI once again plunged sub-40 before bouncing strongly. As we noted in our last update, such readings have preceded important bottoms. We also note that from late-February to early-March, it actually took several touches of this level before the Index brought its skid under control and embarked upon a significant rally.

Our long-term MACD indicator dropped 0.14 to -0.475 and switched back onto a sell signal.

Resistance is strong at 1200 and 1190. Support sits at 1162 and 1156 (200-day moving average).

The Index has made both higher lows and lower highs recently, showing a convergence of bullish and bearish price trends is underway (as our blue and red arrows indicate). Hence, without clearer indications we are left to await a resolution of direction. While the bullish reversal of the Index after piercing the lower Bollinger band (as we witnessed last week) tends to generate an initially bullish reaction, the powerful wall of resistance at the 1200 level suggests the Index needs more time before it can successfully force its way through it.

Comment On!

140
Upload limit is up to 1mb only
To post messages to your Socail Media account, you must first give authorization from the websites. Select the platform you wish to connect your account to CanadianInsider.com (via Easy Blurb).