TSX continues to hold the 12,000 support level
Still a negative technical profile for the TSX Index. Can anyone show me one positive attribute on this chart? Yes, it continues to hold 12,000.
One glimmer of hope for the TSX is that the energy stocks, as measured by the broad-based ETF (XEG:TSX), may have a bottom. XEG found support at $15.50 and is in a near-term uptrend but the major trend is still down. Trade according to the market signals.
On another subject related to the TSX Index, the downward spiral in natural gas seems to have stopped. Zero was in sight. But, a lot of investors were burnt with this commodity. Play natural gas cautiously and have predetermined exit points. A conservative play on natural gas is Encana (ECA:TSX), a direct play on the commodity is the U.S. Natural Gas Fund (UNG), and a leveraged play for the aggressive investor is Horizons BetaPro (HNU:TSX).
Reference the last chart analysis for the TSX Index.
Relevant articles picked from the Web:
- TSX down 0.7% for the year after dismal trading week — FP — May 4, 2012
- Oil dives 2.5 percent, biggest weekly drop since November — Reuters — May 4, 2012
- Income remains the key word for Canadian investors these days — Globe — May 3, 2012
- Closing Bell: TSX beats market doldrums on pipeline deal — FP — April 30, 2012
- Canadian Oil Sands hikes dividend — Globe — April 30, 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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