Thank you for joining us in a weekly technical look at the mid-cap oriented INK Canadian Insider (CIN) Index. Last week, the INK CIN Index slid hard once it was unable to advance beyond 1270, slicing through support and tumbling as low as 1227.97. By week's end the Index found itself at 1236.44 for a loss of 27.16 points or 2.1%.
RSI plunged to 29, dropping 30% or 12.9 points. MACD also tumbled hard, falling 2.35 to -3.9.
Support is now in the 1216-1220 region and 1205 (last major spike lows). Resistance is at 1250 and 1260.
The Index was not able to find firm footing in the 1260s last week and has now sunk to lower levels than it saw during its August 14th bottom. The potential good news out of these ashes is that both the INK CIN's MACD and RSI momentum indicators have not joined price in making lower lows.
At present, these momentum indicators are slightly more elevated than they were a month ago, providing a glint of positive divergence on its chart, just as they are showing on the influential chart of copper and many other commodities and resource stocks I follow. Indeed, such positive divergence is often a precursor to a significant upward trend change.
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