Technical Overview by Nicholas Winton, Hedgehog Trader and @HedgehogTrader on Twitter
Thank you for joining us in a weekly technical look at the mid-cap oriented INK Canadian Insider (CIN) Index. The INK CIN Index, fresh on the heels of a powerful reversal (along with other rising world markets) continued its forward momentum and rose nearly 10 points or a modest 1% this week to 945.49, clearing its 20-day simple moving average at 937.3. The Index bullishly gapped higher when markets opened on Friday morning, and by day's end the CIN index found itself 6.8% off its January lows.
Its near-term momentum indicator RSI rose nearly 20% to the precise 50-point mark and as we've seen in the past, that number needs to be maintained or exceeded to sustain an advance. MACD also rebounded rising from -18 to -12. Those in the Bull camp will want to see MACD re-enter positive territory, something it has only done for a few short weeks since the summer sell-off began. A return to a positive MACD reading in the coming weeks should be a helpful gauge of whether this is just a temporary bounce in a continued decline, or whether we've seen a washout that will begin a protracted move higher.
While momentum is favourable, there are some nearby areas of congestion the Index will need to navigate past in order to maintain its upward trajectory. There is minor resistance just above at the 950 and 960 marks, while major resistance is found in the 970-975 area. Minor support is 937 and major support is 924.
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