Category Archives: TSX Index

Technical Analysis: TSX Index candlestick chart

Harami candlestick pattern for the TSX Index
Harami candlestick pattern on the weekly chart of the TSX Index indicates caution. Monitor support at 12,500.  A confirmed break below support would be a reason to liquidate selected long position.

TSX Index 3 year Weekly Candlestick Chart

I start each trading week with an analysis of the major US and Canadian indexes. A three year weekly candlestick chart is my tool of choice. Three simple moving averages (50 day, 100 day and 200 day) are used to monitor the trend and any crossovers. Volume, On Balance Volume (OBV) and Relative Strength Index (RSI) are used as confirming indicators and to spot divergence.

The harami candlestick pattern identified on the above chart of the TSX Index is similar to the Western inside day. This is not a major reversal pattern but caution is advised. The TSX Index may move into a consolidation range between support and resistance. But a break below support of 12,500 would be reason enough to liquidate selected long position.

Reference last weeks analysis of the TSX Index which highlighted the confirmed breakout above resistance of 12,500.

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. 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.

© 2011 TradeOnline.ca

TSX Index candlestick chart analysis

Confirmed breakout for the TSX Index above 12,500
Confirmed breakout for the TSX Index on the weekly chart.

TSX Index Chart Analysis

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

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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.

© 2011 TradeOnline.ca

TSX Index candlestick chart analysis

TSX Index in a consolidation pattern with resistance at 12,500
TSX Index candlestick chart analysis showing the holding pattern around the 12,500 level.

TSX Index Weekly Chart

I am looking for a confirmed breakout above the resistance level of 12,500. I use both a price filter and time filter to confirm a breakout. In this case, the price filter is +1% and the time filter is two days.

Reference the last chart analysis for the TSX Index.

______________________________

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.

© 2011 TradeOnline.ca

TSX Index analysis using the weekly candlestick chart

TSX Index must hold above 12,500 for a chance to grind higher
TSX Index candlestick chart analysis based on the weekly chart.  The index must hold above 12,500.

TSx Index Weekly Chart

Please review the last chart analysis for the TSX Index.

______________________________

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.

© 2011 TradeOnline.ca

Technical Analysis: TSX Index candlestick chart

Spinning Top candlestick represents indecision for the TSX Index
Candlestick chart analysis for the TSX Index using the weekly chart.  The Spinning Top candlestick represents indecision for the week of January 23, 2012.

TSX Index Weekly Chart

Please review last weeks 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.

© 2011 TradeOnline.ca

TSX Index candlestick chart analysis

Near-term uptrend for the TSX index and will test 12,500
Near-term uptrend for the TSX Index on the candlestick chart with resistance at 12,500.  Volume is increasing which in positive for the index.

TSX Index Weekly Chart

The above weekly chart at the close of trading for the week January 16, 2012 shows the near-term uptrend for the TSX Index with resistance at 12,500. The weekly volume is increasing which bodes well for a continuation of the trend and a break at 12,500. But the intermediate trend is sideways and below the 200 day moving average.  Caution is advised before making any major commitments to this short-term rally. The performance of the TSX pales in comparison to the DJIA which is trading above the 200 day simple moving average and ready to test major resistance.

On Monday, January 23, 2012; the TSX Index made a tentative close above resistance of 12,500.  But you should apply both a price and time filter to confirm the break.  A reasonable price filter for the index would be a 1% to 2% break with a time filter of two days. Then 12,500 would be the new support level.  The reversal of roles from resistance to support or support to resistance is an important concept in technical analysis.

On Tuesday, January 24, 2012; the TSX Index closed below the resistance level of 12,500.  Needless to say, this is not a positive development.  At this time, there is no need to chase the near-term rally as the so called “fast money” made an exit at the 12,500 level.

On Wednesday, January 25, 2012; the TSX Index closed at 12,539 with a bullish engulfing pattern on the daily chart.  The volume was above average and OBV and RSI are both trending up. The fundamental news driving the market is the Fed statement confirming low interest rates and the renewed hope of a deal in Greece with the private lenders.  Now there has to be follow-through on Thursday.  I am looking for a confirmed break above resistance of 12,500 as per the price and time filters.

On Thursday, January 26, 2012; the TSX Index closed at 12,462 after reaching an intra-day high of 12,615.  Where is the follow-through?  The failure to hold above the resistance level of 12,500, for the second time this week, after an encouraging start to the session does not bode well for the continuation of the near-term uptrend.  The selling pressure in the financials, both banks and lifecos, was a standout among the decliners. There was some negative economic data out of the US and this was the cue for the traders to take some profit.  Always look at the market reaction to any news event.  It does not matter what I think or you think about the news event: the only thing that matters is the market reaction.  And traders are selling into the short-term rally which was dominated in Canada by the financials and energy.  The TSX is still in an intermediate lateral trading band: it has gone nowhere in comparison to the DJIA.  Take your cue from the charts.

On Friday, January 27, 2012; the TSX Index closed at 12,466.  It  was unable to break resistance at 12,500 this week.

Now, you need to complete your own daily analysis of the  TSX Index using the advanced settings for BigCharts which are detailed on this site.

Please review last weeks 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.

© 2011 TradeOnline.ca

TSX Index candlestick chart analysis

Spinning top candlestick represents indecision for the TSX Index
TSX Index candlestick chart analysis showing a spinning top candlestick on the weekly chart.  Support is 12,000 with resistance at 12,500.

TSX Index Chart Analysis

The intermediate trend is still sideways and the near-term trend is up. The spinning top candlestick represents indecision and that about sums up the mood for the TSX Index as it enters the third week of trading for 2012.

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

Relevant articles picked from the Web:

This gloomy forecast should get you thinking:

______________________________

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.

© 2011 TradeOnline.ca