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Cda TSX Small Cap Index: November 2008 Critical Support Tested ?
January 25 ( From Stockcharts )
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The Situation
Pressure is still on the Canadian TSX Small Capitalization Index as all the
moving averages are still declining...
On November 16 2015, we had the 20 DMA (Day Moving Average - yellow
line) crossed below the 50 DMA (Day Moving Average - red line) , another
bad omen... We are still below the 200 DMA (Day Moving Average -
Green Line) since September 19 2014. ( See first chart below )
The TSX Small Cap Index is within a downtrend channel that started back
on October 9 2015 with 410.03 as support and 476.90 as resistance. We need to stay below the 50 DMA (Day Moving Average - Red Line) now at 476.25 to keep a negative technical set up. ( See first chart below )
Few realize that in fact, the TSX Small Capitalization Index behavior is following the trend in Oil prices as shown by the first chart below...
The TSX Small Capitalization started to underperform since
January 7 compare to the Mighty TSX60 Index
( so on a relative basis) and the 20 DMA
(Day Moving Average - Yellow Line) on that Ratio turned downward on January 11. But Only getting back above the 200 DMA (Day Moving Average - Green Line) now at 0.6479 will change the Major Bear Trend...
But the most interesting technical factor is that we tested last week the Major Support on a relative basis
(Ratio of the TSX Small Capitalization over the Mighty TSX60 Index). For Technical strenght, we need to stay above that old Major Support reached back on November 2008. ( See second chart below - Amber line - Ellipses )...
Cda TSX Small Cap Index: November 2008 Critical Support Tested ? $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
Financialiceberg.com
TSX Small Capitalization Index
Daily Candles - Right Scale
20 DMA ( Yellow Line )
50 DMA ( Red Line )
200 DMA ( Green Line )
Oil Price - Blue Line - Left Scale
