Thank you for joining us in a weekly technical look at the mid-cap oriented INK Canadian Insider (CIN) Index. Last week, the INK Canadian Insider Index pulled back as low as 1225.65 before bouncing to finish the week at 1237.59 for a gain of 1.15 points.
Momentum improved even more visibly, as RSI rose 5 points or 17% to 34 and MACD moved up 2.8 points to -1.19. We will see whether the 28-30 RSI level reached in mid-August and again last week might prove to be a double bottom, especially since its RSI has rarely seen those low levels over the past 18 months.
Support is now at 1220-1225 and 1205 (last major spike lows). Resistance is at 1237 and 1250.
It was a quietly constructive week, as the Index managed to avoid putting the skids on its prior decline, and as well the INK CIN saw its momentum indicators (which we noted last week showed position divergence with price) lift up, even if price gains were muted.
With Trump's trade war uncertainty ongoing, the major headwind for the Index remains the US Dollar. And while the greenback has declined over the last 2 weeks, it has not yet broken down. On the other hand, the price of copper which we've observed is a good bellwether for the INK CIN (and the downtrodden commodities sector) has been working hard to build a base over the past month. Over this period, the price of copper has traded in a small trading range and its own RSI and MACD momentum indicators have shown positive divergence much like the INK CIN. What's more, over the next 4-6 weeks, I am looking for copper and the INK CIN to find their way out of their current rut and move decisively higher.
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