INK Canadian Insider Index Tumbles 2.4% after Hitting Wall at 1260 Resistance

Thank you for joining us in a weekly technical look at the mid-cap oriented INK Canadian Insider (CIN) Index. The Index seemed near a change of pace ahead of trading last week, as momentum indicators appeared to break a 4-month downtrend.  Indeed, the INK CIN even managed to turn up as high as 1264.01.  However, the Index could neither maintain its nascent burst of energy, nor its support in the 1240s and plunged downward in waterfall fashion to end the week at 1218.27 for a 29.5 point drop for a loss of 2.4%.

As broad markets and copper retraced recent gains, the INK CIN’s momentum indicators melted down.  MACD went from 2.84 to -2.34, triggering a MACD sell signal (though as we note, these signals do whipsaw back and forth).  RSI plunged 40% from 47.12 to 28.26,

Support is now at 1215 and 1200. Resistance is at 1230 and 1240.

As I wrote in our last blog, the 1260 level would be a key level to beat and while the Index hit that target last week, it could not close at or above it, triggering a steep decline.  The Index now finds itself back near its February lows.  Despite that sobering wallop, there are positives.  Gold and silver miners are beginning to outperform the underlying metals and on the copper front, we have seen a big multi-week decline in LME Copper inventory back to late 2017 levels.  At that time, copper (which has a strong correlation with the INK CIN) staged a 10% rally.

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