TSX Index technical analysis

Still waiting for a resolution of the lateral trading band
TSX Index still trading in the lateral trading band with support at 12,200 and resistance at 12,500.

TSX Index YTD Daily Chart

A break below support of 12,200 would indicate the start of a near-term downtrend. I would look for support around the 50% retracement zone of 11,900. A break below 11,900 would indicate a test of the 66% retracement zone around 11,700. A break below 11,700 would indicate a test of support on the weekly chart around 11,500. A break below 11,500 would indicate a full retracement of the move from the June low around 11,300. After that, I will have to dust off some of my older charts indicating the major support level of 11,000. An index or stock can fall from its own weight even in the absence of above average volume on the sell-off.

Reference the last chart analysis for the TSX Index based on the weekly chart.

Take a look at the long-term logarithmic chart of the TSX Index for the period 1988 to 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.

© 2012 TradeOnline.ca

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.