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TECHNICALS

TSX Small Cap Index: Turnaround ?
October 9 ( From Stockcharts )

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The Situation

The TSX Small Capitalization started to outperform since September 30
compare to the Mighty TSX60 Index and the 20 DMA (Day Moving Average)
on that Ratio turned upward on October 6. But one crucial Technical
factor is that we failed yet to get above the 200 DMA on that ratio
(Small Cap over the TSX). We are on a relative basis the cheapest we
ever been since March 2015. ( See second chart below - Amber line - Ellipses )...

On October 8, we had the 20 DMA (Day Moving Average - yellow line) on that
Ratio crossed above the 50 DMA (Day Moving Average - red line) , another
good omen... ( See first chart below )

The TSX Small Cap Index is within an uptrend channel that started back on September 29 2015 with 494.75 as support and 536.84 as resistance. We need to stay above the 50 DMA (Day Moving Average) now at 513.71 to keep a positive technical set up. ( See first chart below )

But the most interesting factor is that we broke on October 7 the Resistance of a Downward Channel that started on June 3 2015, a good technical sign indeed as shown by the first chart below. For Technical strenght, we need to stay above that old Channel Resistance Trendline ( now becomes Support).
( See first chart below - Ellipse).

TSX Small Cap Index: Turnaround ? $TSX #Trading #Canada #investing #tsx60

RATIO
TSX Small Capitalization Index
over
TSX60 Index Index
20 DMA ( Yellow Line )
50 DMA ( Red Line )
200 DMA ( Green Line )

Financialiceberg.com

TSX Small Capitalization Index
Daily Candles
20 DMA ( Yellow Line )
50 DMA ( Red Line )
200 DMA ( Green Line )