Thank you for joining us in a weekly technical look at the mid-cap oriented INK Canadian Insider (CIN) Index. The INK CIN began last week with a spirited run and indeed broke higher as I posited in my prior blog. However, the Index hit a solid wall of resistance at 1294.31, (a mere two points above the upper Bollinger band) and cascaded downwards just as US markets went into correction mode. The Index, which rose as much as 15 points by Wednesday, ended the week down 29 points or 2.2% at 1250.63.
Support is at 1248 and 1235. Resistance is at 1268 and 1280.
RSI plunged 28% or 15.3 points to 39. MACD sunk 4 points to -2.04. MACD rolled over and is now on a technical sell signal.
One positive here is that the INK CIN outperformed major US indices- such as the S&P 500 (SPY) which plunged 5.9% and Dow Jones Industrials (DJI) which was shredded 5.7%. The Index and US markets are heavily oversold and it's my view that we are likely to see a bottom this week and then a strong rebound into mid-April.
One thing to watch is that since precious metals and mining stocks have performed very strongly during this weakness, they are likely to remain outperformers once markets do rebound.
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