Always consider hidden risks
SP TSX60 Index (XIU ETF): Broken Wedge?
March 8 2016 ( From TradingView )
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But one interesting technical factor is that the SP TSX60 Composite Index ( XIU ETF ) broke on the upside the 50 DMA ( Day Moving Average ) on February 17, a good sign indeed. (See Chart Below - Top Panel - Red Line - Ellipse ).
The SP TSX60 Composite Index ( XIU ETF ) is not trading anymore within
a Falling Wedge Pattern that started back since October 16 2014.We did have a false break down in Mid-January and a strong dead cat bounce followed... ( See 1rst Chart Below - Top Panel - Red Trendline )
We broke finally the Resistance of that Wedge at 19.30 on March 3rd. Bulls needed that (to break that Wedge Resistance) for a sustained rally. This is a crucial technical zone and Bulls need to protect it at any costs from now on. That break out was done on average volume; usually we should have seen a stronger volume into the break out phase... Expect the Canadian market (XIU ETF) to start outperforming the Mighty SP500 (SPY ETF).
But the most interesting technical factor is that at the same time we are broke the Resistance of that Falling Wedge, we already broke the resistance trendline from the PVT indicator ( Price Volume Trend )...
( See Chart Below - Bottom Panel - Amber Trendline - Ellipse ). Next huge battle for Bulls is the 200 DMA (Day Moving Average) now at 20.16 on the XIU ETF.( See 1rst Chart Below - Top Panel - Green Line ).
SP TSX60 Index (XIU ETF): Broken Wedge? $TSX #Trading #Canada #investing #tsx60
SP TSX 60 Index - XIU ETF ( Daily Candles - Top Panel )
20 DMA ( Yellow Line )
50 DMA ( Blue Line )
200 DMA ( Red Line )
SP TSX 60 Index - XIU ETF PVT ( Bottom Panel )