Thank you for joining us in a weekly technical look at the mid-cap oriented INK Canadian Insider (CIN) Index. Last week proved a very significant week for the Index as it not only completed a bullish double bottom pattern at 900 but the Index also went on to blast through a major area of congestion which included its 20 and 50 day moving averages at 933 and 951 respectively.
In fact, the index gapped higher several times last week, and hit a high of 969 before closing the week at 960.76 or nearly 9% above its January lows.
As you would expect, momentum indicators finally awakened after a long slumber. RSI put its pedal to the floor, piercing the 50 resistance level before finally peaking at 61.91, a mere half point below its 6-month high of 62.40 reached in late October. What's more, MACD also surged higher and now sits only a fraction of a point from positive territory at -0.212. Furthermore, its MACD histograms read as strongly positive for the first time since October, revealing a rapidly improving picture of momentum.
With momentum displaying tremendous strength, the Index has now positioned itself to attempt an even deeper advance. While there is minor resistance at 960 and major resistance at 970, there is room to rise above those levels, all the way to 1015 where its 200 day moving average rests. Minor support is now 960 and major support is at 951, its 50 day moving average.
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