Harami candlestick pattern for the TSX Index
I start each trading week with an analysis of the major US and Canadian indexes. A three year weekly candlestick chart is my tool of choice. Three simple moving averages (50 day, 100 day and 200 day) are used to monitor the trend and any crossovers. Volume, On Balance Volume (OBV) and Relative Strength Index (RSI) are used as confirming indicators and to spot divergence.
The harami candlestick pattern identified on the above chart of the TSX Index is similar to the Western inside day. This is not a major reversal pattern but caution is advised. The TSX Index may move into a consolidation range between support and resistance. But a break below support of 12,500 would be reason enough to liquidate selected long position.
Reference last weeks analysis of the TSX Index which highlighted the confirmed breakout above resistance of 12,500.
Relevant articles picked from the Web:
- Natural gas: U.S. energy market’s best bargain? — MarketWatch — March 16, 2012
- China hard landing already here: JPMorgan analyst — Financial Post — March 15, 2012
- To boost the poor, China aims lower — Financial Post — March 6, 2012
- TSX seen lagging Wall St for 2nd year in 2012 — Financial Post — March 5, 2012
Note: This technical analysis is for educational purposes so you can learn to trade online using candlestick charts. Please conduct your own chart analysis or consult your financial advisor before making investment decisions. The chart snippets are from BigCharts.com which I recommend and have used for fifteen years. The author of this article may hold long or short positions in the featured stock or index.
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