Category Archives: TSX Index

Technical analysis of the TSX Index

12,000 is now the critical support level
TSX Index in a near-term uptrend with a breakout above the lateral trading band.

TSX Index 1 Year Daily Bar Chart

A well constructed chart is like a good photograph: both do not require much written explanation to tell the story. Take your cue from the market and trade accordingly.

Reference the last chart analysis for the TSX Index 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 with other technical indicators. 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

TSX Index: A dismal technical profile

Stuck in a lateral trading range
TSX Index bar chart shows the inability of the index to breakout of the lateral trading range.

TSX Index 1 Year Bar Cahrt

The lateral trading range sets the limits where the short-term traders will buy and take profits. This is a profitable trading strategy if you are nimble and have the proper trading systems in place. The recent high of 11,900 is an obvious resistance point and the even number of 12,000 near the 200 day moving average will be a key recent point.

What do we have to see for the intermediate period trader? The TSX Index will have to make a confirmed break above 12,000 to have a chance for a run at 12,800. A confirmed break using a filter of 2% would be 12,240 that holds for two days which is the time filter. This is a guideline to guide you in your trading decisions. Technical analysis is not infallible as the markets are governed by the human emotions of greed and fear. And these are powerful forces which can produce severe gyrations in the market.

Always trade in the direction of the prevailing trend. What is the major trend for the TSX Index? What is the intermediate trend? What is the near-term trend? You decide and make the appropriate trading decision. It is your money.

Reference the last chart analysis of the TSX Index posted on July 6, 2012.

Relevant articles picked from the Web:

______________________________

Note: This technical analysis is for educational purposes so you can learn to trade online using candlestick charts with other technical indicators. 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

TSX Index chart analysis

Back to the old trading range
TSX Index chart analysis showing the index back to the old lateral trading range.

TSX Index 1 Year Daily Bar Chart

Reference the last chart analysis for the TSX Index posted on Wednesday, July 4, 2012 when the index was trading above the lateral trading band. It was a short reprieve.

The TSX Index has not recovered from the correction that started in March, 2011.There were many technical indicators warning of that correction. Did you recognize the warning signals? I published a number of charts highlighting the warning signals. Did you heed the warnings by liquidating longs, moving into defensive sectors or by shorting the index? The following are some samples from the posts:

Posted March 13, 2011: TSX at an advanced stage in this intermediate swing.

Posted September 26, 2011:There were many early indicators for the 19.6% correction in 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 with other technical indicators. 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

TSX Index candlestick chart analysis

Breakout above near-term lateral trading range
Breakout for the TSX Index above the lateral trading range.

TSX Index 6 Month Daily Chart

What are the important points from the above chart of the TSX Index?

  1. The TSX Index still has an overall negative technical profile.
  2. The major trend is sideways.
  3. The intermediate trend is down.
  4. The near-term trend is up.
  5. Trading below the 200 day simple moving average.
  6. A positive is the breakout above the lateral trading range.
  7. The new support level (was the last resistance level) is 11,800.
  8. If the TSX cannot hold above 11,800, we are back to the same old story.
  9. Resistance is now 12,000 which is near the 200 day simple moving average.
  10. Major resistance is 12,800.
  11. Volume is a secondary indicator.
  12. An increase in volume is necessary to maintain the near-term uptrend.
  13. OBV is a secondary indicator confirming the near-term uptrend.
  14. RSI is a secondary indicator confirming the near-term uptrend.
  15. Don’t forget to review a 5 year weekly chart for the TSX Index.

Reference the last chart analysis for the TSX Index posted on June 25, 2012 showing the lateral trading range.

You can review all the past charts for the TSX Index.

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

Dismal technical profile for the TSX Index

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:

______________________________

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

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:

______________________________

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

TSX Index chart analysis

TSX Index support and resistance levels
Chart analysis of the TSX Index using the daily bar chart.  Support and resistance levels are identified on this one year chart.

TSX Index Bar chart

Reference the last chart analysis of the TSX Index using the weekly candlestick chart.

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