INK Canadian Insider Index retests 1148 breakout level

Thank you for joining us in a weekly technical look at the mid-cap oriented INK Canadian Insider (CIN) Index. Last week, the overbought Index quickly rocketed to a new all-time intraday high of 1182.57 before pulling back 24 points or 2% to close at 1148.57.

This was a sizable retracement given the Index had gained 2.5% the week prior. But the correction was not entirely unexpected, as the 1147-1150 area had been a previous resistance area and a logical place for a retest to take place.

The Index's short-term momentum indicator slid 19 points or 26% to 53.97. We had previously noted that its RSI of 73 registered at the upper end of its year-long range, so the Index's pullback last week was well within the realm of possibility.

The Index's MACD indicator dropped 2.81 points and fell 28% to 10.03. Much like its RSI, we noted the Index's MACD was bumping its head against the upper end of its trading range (10-12 level) for 2016.

The Index's support levels are 1147 (which is also its 20 day simple moving average) and 1140, while 1160 and 1180 offer resistance above.

It's been a volatile few weeks but with last week's big dip coming on the heels of a major breakout, we're likely seeing a pause that refreshes for the Canadian Insider Index. We'll soon see.

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