Tag Archives: TSX

TSX Composite Index chart analysis

TSX Index could test support of 12,500
TSX index weekly chart showing support and resistance levels

TSX Index 3-Year Weekly Chart courtesy of BigCharts.com

The intermediate trend is up for the TSX Index and the near-term trend is down. Resistance is located around the 12,800 level with support at 12,500. The energy and materials sectors, representing 45% of the TSX Index, are struggling and there is an increased probability that the TSX will test support at 12,500.

Reference the last chart analysis for the TSX Index.

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Note: Click on HOME for updated postings. This technical analysis is for educational purposes so you can learn to trade online using candlestick charts and other technical indicators including volume, moving averages and oscillators. Please conduct your own chart analysis or consult your financial advisor before making investment decisions. The author of this article may hold long or short positions in the featured stock or index.

© 2013 TradeOnline.ca

Copper chart analysis showing resistance at $3.80

Positive correlation between copper and TSX Index
Copper chart analysis using a weekly line chart and a TSX Index overlay. Correlation coefficient is identified on the chart.

Copper 3-Year Weekly Chart with TSX Index Overlay – courtesy of StockCharts.com

The major trend is sideways for copper. The intermediate and near-term trends are up with resistance at $3.80.

Reference the last chart analysis for copper.

Reference the last chart analysis for the TSX Index.

Relevant articles picked from the Web:

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Note: Click on HOME for updated postings. This technical analysis is for educational purposes so you can learn to trade online using candlestick charts and other technical indicators including volume, moving averages and oscillators. Please conduct your own chart analysis or consult your financial advisor before making investment decisions. The author of this article may hold long or short positions in the featured stock or index.

© 2013 TradeOnline.ca

TSX Index struggling at resistance zone of 12,800

Due to the underperforming energy and materials sectors
TSX Index three year candlestick chart showing the index struggling at the resistance zone of 12,800.

TSX Index 3-Year Weekly Chart courtesy of BigCharts.com

Reference the last chart analysis for the TSX Composite Index.

Reference the chart analysis for XEG – S&P/TSX Capped Energy Index Fund.

Reference the chart analysis comparing the performance of the U.S. and Canadian energy sectors.

Reference the chart analysis for the divergence of the Canadian dollar and the TSX Composite Index.

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Note: Click on HOME for updated postings. This technical analysis is for educational purposes so you can learn to trade online using candlestick charts and other technical indicators including volume, moving averages and oscillators. Please conduct your own chart analysis or consult your financial advisor before making investment decisions. The author of this article may hold long or short positions in the featured stock or index.

© 2013 TradeOnline.ca

Canadian Dollar and TSX Composite Index Diverge

Negative implications for the TSX Index
A one year line chart for the Canadian Dollar and the TSX Index showing the divergence starting In January, 2013.  The correlation coefficient is plotted on the lower part of the chart.

Canadian Dollar and TSX Index 1-Year Line Chart courtesy of StockCharts.com

In the above line chart, I am plotting the one year daily performance of the S&P/TSX Composite Index with an overlay (blue line) of the one year performance of CurrencyShares Canadian Dollar Trust ETF (ticker:FXC).

The S&P/TSX Index is trading in an intermediate uptrend and is attempting to hold above the 12,800 support level. The Canadian dollar ETF is in a near-term downtrend with a break below the support level of $99.00 which was the November, 2012 reaction low. From a visual inspection of the above chart, it is evident that the two normally trade together as confirmed by the correlation coefficient at the bottom of the chart. The January, 2013 negative divergence is easily identified on the chart.

If the positive correlation between the TSX Index and the Canadian dollar is still relevant, then either the TSX trades down or the Canadian dollar trades up.  At this stage in the market, I do not forecast an uptrend for the dollar so one can conclude that the TSX Index will not advance much more is this intermediate uptrend. The Canadian dollar has lost some of its luster as a petro-currency and safe haven investment.

Referenced the last chart analysis for the S&P/TSX Composite Index.

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Note: Click on HOME for updated postings. This technical analysis is for educational purposes so you can learn to trade online using candlestick charts and other technical indicators including volume, moving averages and oscillators. Please conduct your own chart analysis or consult your financial advisor before making investment decisions. The author of this article may hold long or short positions in the featured stock or index.

© 2013 TradeOnline.ca

iShares S&P/TSX Energy Index (XEG) chart analysis

Near-term uptrend for XEG but the major trend is down
A six month candlestick chart for iShares S&P/TSX Capped Energy Index (ticker:XEG) showing the near-term uptrend and resistance levels.  RSI is confirming the neart-term uptrend but the intermediate trend is sideways and the major trend is down.

iShares S&P/TSX Capped Energy Index (XEG) 6-Month Chart

With a weighting of 27.88% in the S&P/TSX Composite Index, the energy sector holds the key (along with materials—16.88%) for the continuation of the uptrend in the index. But with the underlying commodities, including oil and natural gas, not breaking out to the upside; it is hard to be optimistic. And then there is the frustrating Canadian crude oil differential due in part to pipeline constraints. The differential compared to world oil prices (Brent) is around $50.00 per barrel. Canada imports around 40% of the oil it consumes. So eastern Canada is paying world prices for crude and western Canada is losing $1.5-billion a month because of the differential. The oil visionaries out west, with the “let eastern Canada freeze in the dark mentality”, were not the great oracles. Who needed to ship oil to the east when our friends to the south would take all we could produce out west? You have the answer today and there is no easy solution. Pipelines cannot be built in a day and the U.S. is able to squeeze more and more out of their wells due to advances in drilling technology—hydraulic fracturing.

The financials, with a weighting of 29.62%, have done the heavy lifting and are up over 19% from the November, 2012 low. But the financial sector is close to major resistance levels and is due for a consolidation or correction.

XEG – S&P/TSX Capped Energy Index Fund – Suncor represents 18.60% of this fund.

Reference the last chart analysis for the S&P/TSX Index posted on January 18, 2013

Reference the last chart analysis for XEG posted on September 18, 2012

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Note: Click on HOME for updated postings. This technical analysis is for educational purposes so you can learn to trade online using candlestick charts and other technical indicators including volume, moving averages and oscillators. Please conduct your own chart analysis or consult your financial advisor before making investment decisions. The chart snippet is 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.

© 2013 TradeOnline.ca

TSX Composite Index chart analysis

TSX Index intermediate uptrend and resistance levels
Chart analysis for the TSX Composite Index showing the intermediate uptrend  with resistance levels. RSI and volume are confirming the uptrend.

TSX Composite Index Weekly Chart

The 12,800 level near the February, 2012 intraday high of 12,788 has been a significant support and resistance level back to June, 2011 when it acted as support. Then it was a resistance level in September, 2011. The reversals of roles in an important concept in technical analysis. I  want to see a confirmed close around 12,900 that holds for two days before the 12,800 price zone is declared a new support level.

The TSX Composite Index has the momentum to breakout above near-term resistance of 12,788 which was the February, 2012 intraday high. But; the materials and oil sectors, which have a 45% weighting in the index, are not participating in the advance. These two sector will have to move upward to sustain the intermediate uptrend in the TSX Index to the 13,500 resistance level. And for these two sectors to move, the underlying commodities have to move upward. But, there is no intermediate uptrend for gold, silver, copper, or oil. And, then there is the frustrating Canadian crude differential partly due to pipeline constraints. And, then there is the low North American price for natural gas.

Reference the last chart analysis for the TSX Index posted on January 10, 2013.

Relevant articles picked from the Web:

______________________________

Note: Click on HOME for updated postings. This technical analysis is for educational purposes so you can learn to trade online using candlestick charts and other technical indicators including volume, moving averages and oscillators. 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.

© 2013 TradeOnline.ca

TSX Index daily bar chart analysis

TSX Index has a new support level and a chance to test 12,800
TSX Index chart analysis showing the new support level of 12,500 and a chance to test resistance of 12,800.

TSX Index 1-Year Daily Bar Chart

The reversal of roles is an important concept in technical analysis. Yes, I am ready to declare a new support level of 12,500 and a chance for the TSX to test resistance 12,800.

Reference the last chart analysis for the TSX Index showing the resistance level of 12,500.

______________________________

Note: Click on HOME for updated postings. This technical analysis is for educational purposes so you can learn to trade online using candlestick charts and other technical indicators including volume, moving averages and oscillators. 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.

© 2013 TradeOnline.ca