This week were looking at one of the great white north best index or better put the stock markets in Canada. With all the rim news lately it’s drawn more attention to the TSX and we today we’ll take live TSX prices and give you our opinion of where or what the market may do
As always I love to look at the markets technically as that is my way of trading and assessing risk. This is just how I see the market and what trends we can take advantage of. The trend is your friend. Let’s start at looking at the longer time frame to see what macro trends are in place or changing.
Let’s start with our horizontal line of support and resistance. The TSX just recently broke though long time resistance at the 12,750 level. You can see that this level was support way back in December of 2010 again in June of 2011 and finally broken through to the downside in August of that same year, since that time we have only managed to get to that level in March of last year and then falling back down. We have now broken through but the TSX has risen just over four percent in less than three months. Keep this in mind as we continue.
Continuing our stock market update we’ll go a little closer and look at the daily time frame to see if there are any good opportunities to initiate new positions.
When I look at the TSX Daily chart is see 100 point levels, like at the ACC. This is a very technical market when you can identify levels of support and resistance at even number price points,
Like:
12,500 – support
12,600 – support
12,700(ish) – Support
12,800 – Support
12,900 Resistance
So knowing that and seeing that the TSX closed as 12768 at the time of writing this, We’re at the perfect time of sit on your hands and wait to see what is tested first, support or resistance.
