Today when you look at the TSX Daily chart ($TSX) it’s very easy to get discouraged. Not only are we below the 50 and 200 days moving averages but there are also two implied areas of resistance. One from a downward trend line and another from broken support at the 11900 area. However, not all is bad. we have been able to establish a short term floor at the 11300 area.
What this allows is an essentially a box to trade in. 11900 at the top end and 11300 and the lower end.
Conveniently, we are right smack in the middle of this range but it gives us a risk outline and areas to watch when approached and as traders that’s all we really need to be able to properly set our risk profiles.