Category Archives: TSX Index

Technical Analysis: TSX Index

Intermediate downtrend and a near-term uptrend

Candlestick chart analysis of the TSX Index with a bullish shaven head candlestick on the weekly chart

TSX Index Three-Year Weekly Candlestick Chart

The TSX Index must make a convincing (+2%) consecutive two-day close above 13,500 to set-up a test of major resistance at 14,300. At this stage, the TSX is much weaker than the DOW, NASDAQ, or the S&P 500.

Reference the previous analysis to the TSX Index.

TSX Index candlestick chart analysis

Next support level for the TSX is 12,500

Candlestick chart analysis for the tsx index showing support levels and a double top formation at 14,300

TSX Index - Three-Year Weekly Chart

Key points from the above chart of the TSX Index:

  • Intermediate trend is down.
  • Near-term trend is down.
  • Second week below the 200-day simple moving average.
  • The 50-day moving average has crossed below the 100-day moving average.
  • Three bearish candlesticks for the last three weeks.
  • Last week’s candlestick has a shaven bottom.
  • RSI in a downtrend.
  • RSI crossed below 50.

Did I miss any other negative points?  Do you see any positive indicators?

Reference the previous 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.

Will the TSX index hold major support?

Still an ominous chart pattern for the TSX index

Six month daily chart of the tsx index showing a double top with major support and resistance, and confirming indicators of MACD, volume and OBV

Six-Month Daily Chart of the TSX Index

Reference the previous analysis of the TSX Index.

Reference my chart settings for Bigcharts and practice using candlesticks with the confirming indicators.

Update for June 11, 2011: TSX index did not hold major support.  Time to reference the previous weekly chart analysis for the TSX which highlights the downside risk.  Obviously, a relatively high cash position—above 50%—is prudent at this stage in the market.

If the U.S. economy doesn’t rebound solidly, if the European debt crisis worsens, or if China, India or Brazil hits a more-serious speed bump, it will come as a nasty shock to a lot of people, and could send stocks down a lot lower.

Read more………… Dow’s Sixth Straight Down Week Fuels Concern Over More Severe Declines Ahead – WSJ

______________________________

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.

TSX Index candlestick chart analysis

What is the downside risk for the TSX Index?
Candlestick chart analysis for the tsx index showing the downside risk based on the double top and retracement levels.

2-Year Candlestick Chart of the TSX Index

What are the key points from the above chart of the TSX?

  • There is the possibility of a double top at 14,300.
  • Major support on the weekly chart is 13,500. Reference the previous chart.
  • I use a two-day time filter and a 2% penetration rule based on the closing prices.
  • 13,500 will become resistance if the TSX closes below 13,500 using the above filters.
  • 13,200 (near the March 7 retracement of 13,250) would then become major support.
  • Using the above filters, a closing price of around 12,900 would confirm a double top.
  • The downside risk would then be around 12,200.

______________________________

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 of the TSX Index

TSX Index in consolidation mode
Three year candlestick chart analysis of the tsx index showing support and resistance so you can trade online using these indicators to make your online trading decisions.

3-Year Chart of the TSX Index

Reference last weeks analysis which was also a consolidation story for the TSX Index. This is in stark contrast to the S&P 500 Index and the Nasdaq Composite Index which are in an uptrend.

Also reference the most recent analysis of the TSX  based on the daily candlestick chart which identified the possibility of  a double top.

When trading online, you always deal in probabilities.  And the probability of a downside correction is greater than an upside breakout.  It has been a good run for the TSX  Index.

Read the National Post article: Now’s the time to diversify away from Canada.

TSX candlestick chart analysis

Can the S&P/TSX index break resistance of 14,300?
Three year candlestick analysis of the weekly chart for the tsx index showing volume, support and resistance levels.

TSX 3-Year Weekly Candlestick Chart

What are the key points to note on this  chart of the TSX index?

  1. Major resistance on the candlestick chart is 14, 300.
  2. The index could not close above 14,300 on two attempts.
  3. Is this the start of a double top formation on the weekly chart?
  4. Support on the weekly chart for the TSX is 13,500.
  5. Is the index moving into a consolidation pattern?
  6. Notice how the bullish engulfing pattern signaled the start of the uptrend in March, 2009.
  7. Did you board the train in March, 2009?  I was aboard with rest stops along the way.
  8. Candlestick chart formations indicated where you could disembark the train for rest stops.
  9. The bullish piercing pattern in July, 2010  indicated that the train was leaving the station again.
  10. Now, the train is at the station.  When will it leave?  And, in what direction?

Reference the previous chart analysis of 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.