Breakout above near-term lateral trading range
What are the important points from the above chart of the TSX Index?
- The TSX Index still has an overall negative technical profile.
- The major trend is sideways.
- The intermediate trend is down.
- The near-term trend is up.
- Trading below the 200 day simple moving average.
- A positive is the breakout above the lateral trading range.
- The new support level (was the last resistance level) is 11,800.
- If the TSX cannot hold above 11,800, we are back to the same old story.
- Resistance is now 12,000 which is near the 200 day simple moving average.
- Major resistance is 12,800.
- Volume is a secondary indicator.
- An increase in volume is necessary to maintain the near-term uptrend.
- OBV is a secondary indicator confirming the near-term uptrend.
- RSI is a secondary indicator confirming the near-term uptrend.
- Don’t forget to review a 5 year weekly chart for the TSX Index.
Relevant articles picked from the Web:
- TSX tumbles on soft jobs data, global growth fears — Reuters — July 6, 2012
- TSX slides, crude oil prices tumble amid weak jobs data — FP — July 6, 2012
- Can platinum stocks shine again? — MarketWatch — July 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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