INK Canadian Insider Index halts slide, closes at 1284.15

Thank you for joining us in a weekly technical look at the mid-cap oriented INK Canadian Insider (CIN) Index. Last week, with momentum on the wane the INK CIN gave its 200-day moving average at the 1280 level a strong test, and held its own, closing above 1280 on all but one occasion. When the Index did draw back, it plunged to the lower Bollinger band at 1275.27 before quickly rebounding to finish the week at 1284.15 for a modest gain of 1.19 points.

RSI remained weak but increased 2.92 points to 41.89. MACD slid another 0.8 points to -2.95.

Support is now at 1280 (200-day moving average) and 1271. Resistance is at 1294 and 1300.The fact the Index briefly eclipsed its lower Bollinger band suggests it may now be ready to snap back for a rally, especially since it did also hold its 200 day moving average. The Index faces a formidable challenge over the next few weeks, given the 8-week downward trendline on its RSI and MACD. As we've been writing for the past 2 or 3 weeks, the US Dollar is treading water ahead of a decline that its own indicators suggest is overdue.