INK Canadian Insider Index sees a technical sell signal after hitting a new intra-day high

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Thank you for joining us in a weekly technical look at the mid-cap oriented INK Canadian Insider (CIN) Index. Last week, the Index rose to a brand new intraday high of 1217.19 but simply could not break through that 1215-1218 wall of resistance which has capped it on its last 5 attempts. The Index then suffered a 27.74 point or 2.3% reset as it fell to 1181.88, which included a 1.37% pasting on Friday.

The Index's short-term momentum indicator (RSI) plunged 19.39 points or 32% to 42.60. The Index's MACD indicator also sunk 3.34 points or 41% to 4.80. It had yet another cross: this time the fast line crossed below the slow line and onto a technical sell signal.

The persistent downtrend line of the long-term MACD momentum indicator which can be traced as far back as mid-December, continues to stifle the Index's advance as it has not been able to break above even the modest 12-point level since then.

So, while the Index has seen several strong rallies since mid-December, it has not been able to build upon them to any great extent. As a result, the Index is now only about 13 points higher than where it stood on Dec 13th.

The Index's 1200 support level which I thought would hold up, actually gave way fairly easily after two attempts last week. As a result, the Index's new supports are the 1175-83 zone (the latter being its 50 day moving average and the former being the lower Bollinger band) and below that, 1150. Resistance is 1200 and above that, the 1213-17 area.

Feel free to follow me on Twitter at http://www.twitter.com/HedgehogTrader for analysis, predictions on specific stocks and market commentary.

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