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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...
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