FINANCIAL ICEBERG
Always consider hidden risks
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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...​


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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