INK CIN Canadian Insider Index rallies 1%, momentum indicators remain strong

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Thank you for joining us in a weekly technical look at the mid-cap oriented INK Canadian Insider (CIN) Index. Since our last update, the CIN Index continued its climb, rising 11 points or 1% and it even reached a high of 975.76, before closing the week at 971.69. The close on Friday was a bit negative, as it closed down over half a percent from its highs and left a reversed hammer pattern. However, we did see a similar reverse hammer pattern on Feb 22nd and it simply led to a 2-day pause before the Index made a new multi-week high.

What's good for the bull case is that the Index is now 90 points or 10% above its January lows and momentum indicators are beginning to show signs of changing character for the positive. For one thing, RSI held above the 60 level for an entire week for the first time since October. Secondly, MACD finally rose into positive territory, closing above 5 for the first time since the same October period. In order for forward momentum to continue, bulls would like to see RSI remain above 50 and ideally above 60.

With Friday's reversal candle, we may be due a pause, but the Index is now looking stronger than it has in many weeks. Looking ahead, major resistance and more areas of congestion sit overhead in the 980 area, while minor resistance is 975. Minor support is at 960 and major support is 950. If momentum softens this week, we may see the Index remain in a 960-975 range, until it can build up enough strength to make a second attempt a breakout.

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