Note: The above chart analysis is valid as of the publication date. To review current charts click on Home or perform a search. 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.
Relative to other world indexes, the TSX had a meager advance of 10.6% for this intermediate run which started in June. The index failed at resistance of 12,500 and is now in a near-term lateral trading band with support at 12,200. A breakout above 12,500 would be a reason to add to positions for a test of 12,800. A break below 12,200 would be a reason to consider shorting the TSX with a minimum retracement to the 11,900 zone. A comfortable cash position is appropriate at this point.
Note: The above chart analysis is valid as of the publication date. To review current charts click on Home or perform a search. 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.
Monitor the resistance level of 12,500 and support of 12,200
TSX Index 3 Year weekly Chart
The TSX Index still has an intermediate uptrend with a near-term downtrend. Monitor the resistance level of 12,500 and the support level of 12,200. A breakout above 12,500 will give the index a shot at resistance of 12,800. A break below support of 12,200 will indicate the end of this intermediate uptrend.
Note: The above chart analysis is valid as of the publication date. To review current charts click on Home or perform a search. 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.
Retracement zone if the S&P 500 cannot hold support
S&P 500 Index 6 Month Daily chart
What is the trend? That is the most important point to determine in technical analysis and you always trade in the direction of the trend. The major trend is up, the intermediate trend is up and the near-term trend is down. The S&P 500 Index has gained around 16% from the June low for the current intermediate uptrend. Anytime an index or stock has gained around 20%, reversal signals on the charts take on greater significance. Trading is all about the assessing the probabilities.
The intermediate uptrend is still intact but the near-term downtrend must stop at the intermediate support zone. This support zone is around 1,420 which was a resistance point in the uptrend. The reversal of roles is an important concept in technical analysis. Also, the support zone is around the 50-day simple moving average which is always an important input in automated trading systems. And, the support zone is at the intersection of the upward sloping trendline.
The retracement zone is based on the 50% retracement of the move which started in June. Also, the retracement zone is near the 200-day simple moving average which is also an important input in automated trading systems.
In summary, always trade in the direction of the the intermediate trend until there is a confirmed break of the trendline. Traders use different time and percent levels for confirmation numbers.
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Note: The above chart analysis is valid as of the publication date. To review current charts click on Home or perform a search. 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 must hold 12,200 or the intermediate uptrend is over
TSX Index YTD Daily Candlestick Chart
The weekly chart for the TSX Index published on September 14, 2012 shows the dismal performance over the last three years. It is not a pretty picture. And the above daily chart shows the TSX stalling at 12,500 with a paltry gain of around 11% from the 11,300 low and a YTD gain of 0%. Also, a two year performance of 0% is not too encouraging. With energy, basic materials and financials (LifeCos in particular) not performing; the TSX does not have a chance for a shot at 12,800.
Some points to review from the above chart:
Intermediate uptrend for TSX Index as of September 24, 2012
Could not break resistance of 12,500
Near-term downtrend
RSI is confirming the intermediate uptrend and above 0
Near-term support and resistance levels are identified
Must hold 12,200 to maintain the intermediate uptrend
Note: The above chart analysis is valid as of the publication date. To review current charts click on Home or perform a search. 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.
Reference the iShares website to review the holdings for the capped energy index.
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Note: The above chart analysis is valid as of the publication date. To review current charts click on Home or perform a search. 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.
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.
The support level of 1,335 is near the 50 day moving average. This is a key intermediate support level and automated trading systems are programmed to initiate sell orders went the level is breached by a predetermined amount.
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.
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