INK Canadian Insider Index rises 2.1%, regains 200-day moving average

Thank you for joining us in a weekly technical look at the mid-cap oriented INK Canadian Insider (CIN) Index. Last week, the heavily oversold Index got a bounce as we had expected, rising 24.63 points or 2.1%, nearly erasing the 2.5% loss the week before. In doing so, The INK CIN managed to close back above its key 200-day moving average at 1171 and its lower rising trend-line at 1161.

RSI surged 45% to 51.83. MACD roared back from -3.29 to a nearly positive reading of -0.0583.

Resistance is now at 1174 and 1179 (its 50-day moving average).

Support sits at 1162 and 1149 (which has now held on the last 4 tests).

The Index made some positive strides last week, including recovering its 200-day moving average. Although the Index does need its RSI to rise above its current level, both because RSI has been trending lower for a couple of months and because the Index moves strongest once it reaches 60 and above. MACD has also been trending downward the last few months. While the 10-15 level was once the resistance to beat, that resistance level has now fallen to about 3.5, striking distance if the INK CIN can put its running shoes back on.

We'll soon know if the Index's latest flush, which saw RSI plunge to notable levels struck at key bottoms in both January 2016 and August 2015, is a capitulation that refreshes its uptrend, or yet another bounce in a continuing downtrend.

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