Monthly Archives: June 2012

Dismal technical profile for the TSX Index

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Waiting for a resolution of the lateral trading range
TSX Index chart analysis showing the lateral trading range.

TSX Index Daily Bar Chart

Reference the last chart analysis for the TSX Index.

Relevant articles picked from the Web:

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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.

© 2012 TradeOnline.ca

PotashCorp (POT:TSX) candlestick chart

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Bullish shaven head candlestick on the daily chart
PotashCorp candlestick chart analysis

PotashCorp Daily Candlestick Chart

Reference the corporate site for PotashCorp to review the fundamental data on the company.

I am not showing the volume on the above chart but it will have to increase to sustain the near-term uptrend.

Relevant article picked from the Web:

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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.

© 2012 TradeOnline.ca

Technical Analysis of the TSX Index

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How will the near-term lateral trading range be resolved?
TSX Index trading in a near-term lateral trading range with resistance at 11,700 and support at 11,200

TSX Index 1 Year Daily Bar Chart

Determining the trend and trading in the direction of the trend is the most important rule of technical analysis.

Yes, the TSX Index has a negative technical profile. The major trend (past year) is sideways. The intermediate trend is down. And the near-term trend is sideways with resistance at 11,700 and support at 11,200. Trading online is all about evaluating the probabilities and at this stage there is a higher probability that the TSX Index will break support at 11,200 and test major support of 11,000. A breakout above resistance of 11,700 will see the index meet resistance around the 12,000 level.

You have three options when you trade online. You can buy the market, short the market or stand aside with a comfortable cash position. At this stage in the market, irrespective of relatively low valuations, the safest bet is to do nothing and rest comfortably with your above average cash position.

Reference the last chart analysis of the TSX Index posted on May 18, 2012.

What are the critical support levels for the TSX Index? What is the downside risk for the TSX Index? Reference my post from October 3, 2011 which is just as relevant now.

Don’t forget to evaluate the longer-range charts for the major indexes. You will miss a lot of important price information it you do not take the occasional look at these charts. I posted a logarithmic chart of the TSX Index on November 21, 2011 which is still relevant today and covers the period from 1988 to 2011. I will publish an updated long-term chart showing the overall trend and support levels.

Relevant articles picked from the Web:

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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.

© 2012 TradeOnline.ca

S&P 500 Index candlestick chart analysis

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Bullish Engulfing Pattern with resistance at 1,350
Candlestick chart analysis for the S&P 500 Index showing an bullish engulfing candlestick pattern with near-term resistance at 1,350

S&P 500 Index 3 Year Chart

Reference the last chart analysis for the S&P 500 Index which highlights the support levels.

Relevant articles picked from the Web:

______________________________

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.

© 2012 TradeOnline.ca

Technical Analysis: U.S. Treasury 10-Year Note

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Monitor the resistance level of 1.70% and then 1.80%
Candlestick chart showing the the key resistance levels of the U.S. Treasury 10-Year Note

U.S. Treasury 10-Year Note 3 Year Chart

Has a negative technical profile as indicated by the major trend which is sideways and intermediate trend which is down.

The yield would have to move above the resistance levels of 1.70% and 1.80% if the near-term rally in U.S. equities is to continue. This represents the movement of capital from the relative safety of the U.S. Treasury to U.S. equities. A sustained advance of the 10-Year yield to the 2.40% level would indicate the upward movement in commodity based indexes like Canada, Australia and Brazil as investors take on more risk.

Reference the last chart analysis of the U.S Treasury 10-Year Note based on the daily chart.

Relevant articles picked from the Web:

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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.

© 2012 TradeOnline.ca

Technical Analysis: VIX – CBOE Volatility Index

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Key support level for the VIX is 20
Monitor the key support level of 20 for the VIX

VIX 3 Year Weekly Chart

The VIX is the fear gauge for the U.S. market and has an inverse correlation to the major U.S. Indexes. A break below support of 20 would be an indication that the near-term rally in U.S. stocks can continue.

Reference the last chart analysis of the VIX.

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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.

© 2012 TradeOnline.ca

Technical analysis of copper

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Intermediate trend is down for copper
The intermediate trend is down for copper with major support at $3.00/lb

One Year Copper Chart

Copper is seen as a leading indicator for the global economy. The intermediate trend for copper is down which does not bode well for equities overall and commodity based equities in particular.

Reference the last chart analysis for copper posted on May 18, 2012.

View Kitco for updated charts and other time periods.

Relevant articles picked from the Web:

______________________________

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.

© 2012 TradeOnline.ca