FINANCIAL ICEBERG
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 TECHNICALS
Cda TSX Small Cap Index ETF XCS: Near Breakout?
 August 15 2016 ( From Stockcharts  )
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The Situation

​
​Since bottoming out on January 20 2016 at 10.51, the TSX Small Cap Index 
ETF ​XCS (iShares S&P/TSX Small Cap Index ETF) is still within a steep 
​uptrend channel that Bull players need to protect at all costs... 
​In fact, from ​the low reached on January 20 at 10.51 ​on the XCS ETF ​was 
​last seen in July 2009.​ Commodity prices are the main reason for that... ​
​(See first chart below) 

​With a closing price of 16.84 on August 12, the XCS ETF is up by +60.2%
since January 20 2016​, a lot better compare to the main Canadian Index
ETF XIU (​iShares S&P/TSX 60 Index ETF) up +26.6% and a shy +20.7% for the SP500 Index ETF SPY (​SPDR S&P500 ETF).
​
​​The TSX Small Cap Index ETF XCS is now testing a Daily Major Resistance Trendline that started back since April 2011! (See First Chart Below - Red Trendline - Ellipse) It is only an Intermediate Trendline as the Master Trendlines are further away. (See First Chart Below - Blue Trendlines)

​​The TSX Small Capitalization ETF XCS started to outperform ​​since ​January 20 2016 ​​compare to ​the Mighty TSX60 Index ETF XIU ​(so on a relative basis) and that ratio broke on the upside on February 26 2016 the 200 DMA (Day Moving Average - ​Green Line)​. Last time that it was above the 200 DMA was back in July 2014;
​​that was another game changer for the Small Cap because it did change the Major Bear Trend back then...
(See Second Chart Below - Green Line)
​
​​​But the most interesting technical factor is that we broke on May 9 2016 on a relative basis ​(Ratio of XSC ETF over XIU ETF) the Major Resistance Trendline that started back since July 2011!
​​(See Second Chart Below - Red Trendline - Ellipse)

But ​​few of us realize that in fact, the TSX Small Capitalization Index ETF XCS behavior is following the main trend in Gold prices​ (See Third Chart Below - Pink Line) and a little the Oil prices (See Third Chart Below - Blue Line) as the main holdings of that ETF are in Materials (39%) and Energy (16%)... So you need to have a Bull view on Gold and Oil prices to think that the XCS ETF will continue to outperform the broad stocks indices...

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Cda TSX Small Cap Index ETF XCS: Near Breakout?  $TSX  #Trading #Canada  #investing  #tsx60 #gold #oil


Daily RATIO
​TSX Small Capitalization Index ETF XCS 
​over​
​TSX60 Index Index ETF XIU
20 DMA ( Yellow Line )
​​​50 DMA ( Red Line )

200 DMA (  Green Line )







Financialiceberg.com


Financialiceberg.com


TSX Small Capitalization Index ETF XCS
Daily Candles​ - Right Scale
​20 DMA ( Yellow Line )

​50 DMA ( Red Line )

200 DMA ( Green Line )


TSX Small Capitalization Index ETF XCS
Daily Candles​ - Right Scale
​20 DMA ( Yellow Line )
​50 DMA ( Red Line )
200 DMA ( Green Line )
Oil Price ​- Blue Line 
Gold Price - Pink Line​ - Left Axis





Financialiceberg.com