Category Archives: TSX Index

TSX Index struggling at resistance zone of 12,800

Due to the underperforming energy and materials sectors
TSX Index three year candlestick chart showing the index struggling at the resistance zone of 12,800.

TSX Index 3-Year Weekly Chart courtesy of BigCharts.com

Reference the last chart analysis for the TSX Composite Index.

Reference the chart analysis for XEG – S&P/TSX Capped Energy Index Fund.

Reference the chart analysis comparing the performance of the U.S. and Canadian energy sectors.

Reference the chart analysis for the divergence of the Canadian dollar and the TSX Composite Index.

______________________________

Note: Click on HOME for updated postings. This technical analysis is for educational purposes so you can learn to trade online using candlestick charts and other technical indicators including volume, moving averages and oscillators. Please conduct your own chart analysis or consult your financial advisor before making investment decisions. The author of this article may hold long or short positions in the featured stock or index.

© 2013 TradeOnline.ca

Canadian Dollar and TSX Composite Index Diverge

Negative implications for the TSX Index
A one year line chart for the Canadian Dollar and the TSX Index showing the divergence starting In January, 2013.  The correlation coefficient is plotted on the lower part of the chart.

Canadian Dollar and TSX Index 1-Year Line Chart courtesy of StockCharts.com

In the above line chart, I am plotting the one year daily performance of the S&P/TSX Composite Index with an overlay (blue line) of the one year performance of CurrencyShares Canadian Dollar Trust ETF (ticker:FXC).

The S&P/TSX Index is trading in an intermediate uptrend and is attempting to hold above the 12,800 support level. The Canadian dollar ETF is in a near-term downtrend with a break below the support level of $99.00 which was the November, 2012 reaction low. From a visual inspection of the above chart, it is evident that the two normally trade together as confirmed by the correlation coefficient at the bottom of the chart. The January, 2013 negative divergence is easily identified on the chart.

If the positive correlation between the TSX Index and the Canadian dollar is still relevant, then either the TSX trades down or the Canadian dollar trades up.  At this stage in the market, I do not forecast an uptrend for the dollar so one can conclude that the TSX Index will not advance much more is this intermediate uptrend. The Canadian dollar has lost some of its luster as a petro-currency and safe haven investment.

Referenced the last chart analysis for the S&P/TSX Composite Index.

______________________________

Note: Click on HOME for updated postings. This technical analysis is for educational purposes so you can learn to trade online using candlestick charts and other technical indicators including volume, moving averages and oscillators. Please conduct your own chart analysis or consult your financial advisor before making investment decisions. The author of this article may hold long or short positions in the featured stock or index.

© 2013 TradeOnline.ca

TSX Composite Index chart analysis

TSX Index intermediate uptrend and resistance levels
Chart analysis for the TSX Composite Index showing the intermediate uptrend  with resistance levels. RSI and volume are confirming the uptrend.

TSX Composite Index Weekly Chart

The 12,800 level near the February, 2012 intraday high of 12,788 has been a significant support and resistance level back to June, 2011 when it acted as support. Then it was a resistance level in September, 2011. The reversals of roles in an important concept in technical analysis. I  want to see a confirmed close around 12,900 that holds for two days before the 12,800 price zone is declared a new support level.

The TSX Composite Index has the momentum to breakout above near-term resistance of 12,788 which was the February, 2012 intraday high. But; the materials and oil sectors, which have a 45% weighting in the index, are not participating in the advance. These two sector will have to move upward to sustain the intermediate uptrend in the TSX Index to the 13,500 resistance level. And for these two sectors to move, the underlying commodities have to move upward. But, there is no intermediate uptrend for gold, silver, copper, or oil. And, then there is the frustrating Canadian crude differential partly due to pipeline constraints. And, then there is the low North American price for natural gas.

Reference the last chart analysis for the TSX Index posted on January 10, 2013.

Relevant articles picked from the Web:

______________________________

Note: Click on HOME for updated postings. This technical analysis is for educational purposes so you can learn to trade online using candlestick charts and other technical indicators including volume, moving averages and oscillators. 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.

© 2013 TradeOnline.ca

TSX Index daily bar chart analysis

TSX Index has a new support level and a chance to test 12,800
TSX Index chart analysis showing the new support level of 12,500 and a chance to test resistance of 12,800.

TSX Index 1-Year Daily Bar Chart

The reversal of roles is an important concept in technical analysis. Yes, I am ready to declare a new support level of 12,500 and a chance for the TSX to test resistance 12,800.

Reference the last chart analysis for the TSX Index showing the resistance level of 12,500.

______________________________

Note: Click on HOME for updated postings. This technical analysis is for educational purposes so you can learn to trade online using candlestick charts and other technical indicators including volume, moving averages and oscillators. 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.

© 2013 TradeOnline.ca

TSX Index daily candlestick chart

TSX Index and another chance to hold 12,500
TSX Index chart analysis showing the index closing again above 12,500. Now there has to be follow-through above the bullish shaven head candlestick.

TSX Index 6-Month Candlestick chart

This is the second close this week above resistance of 12,500. Now there has to be follow-through on the bullish shaven head candlestick if the the TSX Index is to hold above resistance. Then there will be a new support level (reversal of roles) of 12,500 and an increased probability for the index to test major resistance of 12,800. As you can see from the above candlestick chart, the TSX Index has struggled to breakout above resistance of 12,500 since September, 2012 and I could go back further on the weekly chart where 12,500 was a significant resistance point.

What is the trend for the TSX Index? The near-term trend is up, the intermediate trend is up and the major trend is sideways.

Reference the last chart analysis for the TSX Index which was also based on the daily chart.

______________________________

Note: Click on HOME for updated postings. This technical analysis is for educational purposes so you can learn to trade online using candlestick charts and other technical indicators including volume, moving averages and oscillators. 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.

© 2013 TradeOnline.ca

TSX Index candlestick chart analysis

TSX Index fails to breakout above resistance of 12,500
TSX Index candlestick chart analysis showing the failure at resistance of 12,500.

TSX Index 6-Month Daily Chart

Reference the last chart analysis for the TSX Index published on December 17, 2012.

Relevant articles picked from the Web:

______________________________

Note: Click on HOME for updated postings. This technical analysis is for educational purposes so you can learn to trade online using candlestick charts and other technical indicators including volume, moving averages and oscillators. 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.

© 2013 TradeOnline.ca

Technical Analysis of the TSX Index

TSX back to the trading range of 12,200 to 12,500
TSX Index one year daily bar chart with support and resistance levels.  Back to the old trading range of 12,200 to 12,500

TSX Index 1-Year Daily Bar Chart

The resistance level of 12,200 identified on the last chart of the TSX Index is now the support level. The reversal of roles is an important concept in technical analysis.

Relevant articles picked from the Web:

______________________________

Note: Click on HOME for updated postings. This technical analysis is for educational purposes so you can learn to trade online using candlestick charts and other technical indicators including volume, moving averages and oscillators. 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