Tag Archives: major support

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:

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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.

© 2012 TradeOnline.ca

Technical Analysis: S&P 500 Index

Critical support zone for the S&P 500 Index
Technical analysis of the S&P 500 Index showing the critical support  zone of 1,285 to 1,300

S&P 500 Index 2 Year Weekly Chart

The critical support zone represents a retracement of 50% from the April, 2012 high to the November, 2012 low. There is money on the sideline that will flow into equities at this level. And the shorts will cover if the S&P 500 Index continues to advance above the support zone.

A confirmed break below this support level is an ominous warning for this U.S. Index.

Against the backdrop of the Eurozone crisis with Greece and Spain in the spotlight, there are four major U.S. reports the week of May 28, 2012:

  1. On Tuesday, the U.S. Conference Board reports on consumer confidence in May. Economists expect a reading of 69.5.
  2. On Thursday, the U.S. Labour Department reports on initial jobless claims in the week ending May 26. Economists expect 370,000 new claims.
  3. On Friday, The U.S. Institute for Supply Management issues its manufacturing index for May. Economists expect a reading of 53.9.
  4. On Friday, the U.S. Labour Department issues its jobs report for May. Economists expect the unemployment rate to remain unchanged at 8.1 per cent, and non-farm payrolls to add 150,000 jobs.

Enjoy your trading week.

Reference the last chart analysis for the S&P 500 Index posted on April 16, 2012 when it was still holding above the upward sloping trendline.

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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.

© 2012 TradeOnline.ca

U.S. Treasury 10-Year Note daily bar chart

Intermediate trend is down with support at 1.70%
U.S. Treasury 10-Year Note chart analysis showing support and resistance levels.

U.S. Treasury 10-Year Note Daily Bar Chart

This is a key indicator that I monitor daily. Safe haven buying has pushed the yield to a record low.

Reference the last chart analysis for the U.S. 10-Year Treasury.

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

VIX – CBOE Volatility Index – chart analysis

VIX - CBOE Volatility Index - chart analysis showing the support and resistance levels.

VIX Weekly Chart

This is a key indicator that I monitor daily.

A good overview of the VIX From Wikipedia.

Reference the last chart analysis for the VIX.

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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.

© 2012 TradeOnline.ca

Precision Drilling (PD:TSX) chart analysis

Can Precision Drilling hold the $9.50 support level?
Candlestick chart analysis for Precision Drilling as it prepares to test support at $9.50

Precision Drilling Daily Chart

Reference the last chart analysis for Precision drilling.

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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.

© 2012 TradeOnline.ca

U.S. Treasury 10-year note chart analysis

Major resistance for the 10-year note is 2.40%
Near-term uptrend for the 10-year treasury with major resistance at 2.40%.  The new support level is 2.10% and the intermediate trend is sideways.

US Treasury 10-Year Yield Weekly Chart

U.S. Treasury 10-year note has been trading in an intermediate lateral band of 1.80% to 2.10% for the past six months. The reversal of roles is an important concept in technical analysis and the old resistance level of 2.1% is now the new support level. Can the index breakout above 2.4% which is a major resistance level that was tested last October? Or will the TNX ease into another lateral trading band with 2.10% as the new support level?

Reference the last chart analysis for the 10-year treasury based on the weekly chart when it was unable to break the resistance level of 2.40% last October.

“Unless you want to earn an inflation adjusted return of minus 2-3% as offered by Treasury bills, then you must take risk in some form.” Bill Gross

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 candlestick chart analysis

Intermediate trend is sideways for the TSX Index
TSX Index candlestick chart analysis showing support and resistance levels.  The chart also identifies the major trend, intermediate trend and the near-term trend.

TSX Weekly Candlestick Chart

When the major trend is down, and the intermediate trend is sideways; the best trading decision is to raise cash levels, and stay out of the market.

Reference last weeks analysis of the TSX Index: not much has changed.

What are the critical support levels for the TSX Index?

What is a Double Top Reversal Pattern identified in the above chart?

Relevant articles picked from the Web:

 ______________________________

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 daily candlestick chart

Spinning top candlestick represents indecision

TSX index candlestick chart analysis based on the daily chart showing a spinning top candlestick with support and resistance
TSX Index Daily Chart

Reference the last chart analysis for the TSX Index based on the monthly logarithmic chart.

Reference the last chart analysis based on the weekly candlestick chart.

Relevant articles from the Web:

 ______________________________

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