Category Archives: TSX Index

TSX Index candlestick chart analysis

TSX Index closed below support of 12,000

candlestick chart analysis for the tsx index showing the bearish candlestick pattern with a shaven bottom and the new resistance level of 12,000

TSX Index Candlestick Chart

The intermediate trend is down for the index: cash is king.

The reversal of roles from support to resistance or resistance to support is an important concept in technical analysis. In the above chart, I highlighted a real time example where 12,000 was support on the chart analysis last week. It is now the resistance level for the TSX Index: at least for now.

Reference last weeks chandlestick chart analysis based on the weekly chart.

Financial Post article dated Nov 21, 2011: What you need to know before markets open

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The main purpose of TradeOnline.ca is a starting point for your own chart analysis. Technical analysis serves as a guidepost in your daily investment analysis and is used in conjunction with fundamental analysis. There is no magic formula for making profits when you trade online in the stock market. We are all students of the market, and one should never give up reviewing and learning the basics. Visit the Advanced Chart Settings and customize BigCharts so you can review different time periods.

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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

Technical Analysis: TSX Index candlestick chart

TSX Index in a consolidation range

TSX Index candlestick chart analysis showing a consolidation range

TSX Index Weekly Chart

The following are the key points from the above chart analysis:

  • The near-term trend is sideways.
  • Trading in a consolidation range.
  • Support is 12,000.
  • Resistance is 12,500.
  • Reference the Oct 3 post regarding major support of 11,000.
  • I explained the double top reversal pattern in the June 18 post.
  • Another post explaining the double top reversal pattern on May 6.
  • The April 24 post warned of the double top.
  • The possibility of a double top was raised in the April 14 post.

What is a reasonable trading strategy at this point in the market?

The TSX Index is trading in a near-term consolidation range as indicated on the chart. A neutral trading strategy with an above average cash position would be appropriate. A confirmed break (+2% for two days) above the 12,500 resistance level would be a reason to add cautiously to long positions. A confirmed break below support of 12,000 would be a reason to liquidate longs.

Past posts for the TSX Index provide continuity in the analysis:

Reference the last chart analysis dated Nov 4 for the TSX Index. This chart identified the harami cross candlestick pattern with a tweezers top. You can also review the TSX Index Category for a sequential listing of charts.

The following current articles are picks from the web:

Financial Post article dated Nov 12, 2011: Does anyone really want us to be financially savvy?

Financial Post article dated Nov 11, 2011: Mr. Market’s mood is picking up

Financial Post article dated Nov 11, 2011: Ride volatility with managed futures

Financial Post article dated Nov17, 2011: Run from debt to cash sparks sell off

______________________________

The main purpose of TradeOnline.ca is a starting point for your own chart analysis. Technical analysis serves as a guidepost in your daily investment analysis and is used in conjunction with fundamental analysis. There is no magic formula for making profits when you trade online in the stock market. We are all students of the market, and one should never give up reviewing and learning the basics. Visit the Advanced Chart Settings and customize BigCharts so you can review different time periods.

______________________________

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

Harami Cross on the weekly chart of the TSX Index

Candlestick chart analysis for the TSX Index on the weekly chart showing a harami cross and a tweezers top.

TSX Index Weekly Chart

The intermediate trend is down and the near-term trend is sideways.

Reference the last chart analysis for the index.

MarketWatch: Canadian stocks hesitate on Italy concerns

The main purpose of TradeOnline.ca is a starting point for your own chart analysis. Technical analysis serves as a guidepost in your daily investment analysis and is used in conjunction with fundamental analysis. There is no magic formula for making profits when you trade online in the stock market. We are all students of the market, and one should never give up reviewing and learning the basics. Visit the Advanced Chart Settings and customize BigCharts so you can review different time periods.

Please leave a comment to suggest a stock or index for analysis on this site.

______________________________

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 chart analysis showing the trendlines

Can the TSX Index break the downward sloping trendline?

Chart analysis of the TSX Index showing the trendlines over the past year

TSX Index Daily Chart

The TSX Index has a negative technical profile. The intermediate trend is down and the index trades below the 50-day, 100-day and 200-day simple moving averages. And, the 50-day moving average is below the 100-day and 200-day moving averages. And, the TSX Index trades below the downward sloping trendline. Also, the RSI is trending down and is below 50. Resistance is at the 12,000 level with current support for the lateral band at 11,500. Major support is at the 11,000 level.

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

The following are some current 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

TSX Index in a lateral trading band

TSX Index candlestick chart analysis showing the support and resistance levels.  The relative strength indicator (RSI) is below 50 and trending down.

TSX Index Weekly Candlestick chart

Reference the last chart analysis for the TSX Index.

Interesting Financial Post article dated Oct 12, 2011: Energy stocks ‘discounting armageddon’

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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

Technical analysis for the TSX index

Critical support levels for the TSX Index

Technical analysis for the TSX Index using a three year candlestick chart highlighting major support and resistance levels

TSX Index Three-Year Weekly Candlestick Chart

The support level of 11,000 to 10,900 is based on a Fibonacci Retracement of 50% of the move from the March, 2009 low of 7500 to the April, 2011 high of 14,300. And it is also near the July, 2010 low of 11,065. This is a major support level!

The final support level of 10,000 is based on a Fibonacci Retracement of 61.8% of the move from the March, 2009 low of 7500 to the April, 2011 high of 14,300.

Please reference the previous 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 of the TSX Index

There were many early indicators for the 19.6% correction in the TSX Index

Techncial analysis using a candlestick chart for the TSX Index

Where is the bottom for the TSX Index?

Reference my March 13, 2011 post: TSX at an advanced stage in this intermediate swing

Review the archive of my posts for more of the early indicators. Technical analysis is about risk management.

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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.