Monitor key near-term support of 12,200
Relative to other world indexes, the TSX had a meager advance of 10.6% for this intermediate run which started in June. The index failed at resistance of 12,500 and is now in a near-term lateral trading band with support at 12,200. A breakout above 12,500 would be a reason to add to positions for a test of 12,800. A break below 12,200 would be a reason to consider shorting the TSX with a minimum retracement to the 11,900 zone. A comfortable cash position is appropriate at this point.
Relevant articles picked from the Web:
- Five Canadian stocks with most insider buying and selling — Globe — October 17, 2012
- For Day Traders: The Most Liquid ETF for Every Commodity — CommodityHQ — October 11, 2012
Note: The above chart analysis is valid as of the publication date. To review current charts click on Home or perform a search. 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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