Technical analysis can be adapted to any time frame. Today, we continue our analysis of the near-term trend (less than two or three weeks) for the TSX.
The index is still in a consolidation phase with resistance at 13,500 and support at 13,200. If the index breaks 13,200 on the downside, the major support level is then 13,000.
What did today’s candlestick reveal?
It was a small red candlestick with no major negative implications when viewed on its own. When viewed in relation to the previous day’s tall white candlestick, it is classed as a harami cross ( inside day) formation. In other words, the price movement was within the range of the previous day’s action. It just confirms the consolidation phase (sideways) for the TSX and was not a positive pattern after a tall white candlestick.
The index must break and hold above 13,500 to confirm a new upleg in the market.
The TSX looks a little tired at this stage . Be cautious about adding to long positions.
The chart snippet above was snipped from this 6-month live chart. This large chart will give you a better overall view of the trend and includes other customized indicators.