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TECHNICALS
Cda TSX Small Cap Index: Outperforming?
February 29 2016 ( From Stockcharts )
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The Situation
The TSX Small Cap Index is within an uptrend channel that started back
on January 20 2016 with 478.43 as support and 514.67 as resistance.
In fact, the low reached on January 20 at 412.67 on the TSX Small Cap
Index was last seen in July 2009. ( See first chart below )
The TSX Small Cap Index is in a major bottoming out technical pattern:
1) On February 17 2016, it broke the resistance trendline that started back
since October 9 2015. ( See first chart below - Red Trendline - Elllipse)
2) On February 23 2016, we had the 20 DMA (Day Moving Average - yellow
line) crossed above the 50 DMA (Day Moving Average - red line) , another good omen... We are still below the 200 DMA (Day Moving Average - Green Line) since September 19 2014.
We need to stay above the 50 DMA (Day Moving Average - Red Line) now at 465.96 to keep a positive technical set up. ( See first chart below - Red Line )
3) The TSX Small Capitalization started to outperform since January 20 2106 compare to the Mighty TSX60 Index (so on a relative basis) and now testing on that Ratio the 200 DMA (Day Moving Average - Green Line) now at 0.6436 that can change the Major Bear Trend...
But the most interesting technical factor is that we tested since September 2015 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 )...
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...
Cda TSX Small Cap Index: Outperforming? $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
