TECHNICAL ANALYSIS: TSX Consolidates, Momentum Turns Negative, RSI Still Overbought


Shutterstock photo

Canadian stocks are lower in afternoon trading, with most sectors down, led by a more than 3% drop in Metals and Mining.

The TSX continues to consolidate in a relatively tight range, but momentum has turned negative as reflected by the moving average convergence divergence index (MACD). The MACD generated a sell signal as the spread (the 12-day moving average minus the 26-day moving average) crossed below the 9-day moving average of the spread.

The RSI is still printing above the 70 overbought trigger level and could foreshadow a correction.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2014 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing Commodities
Referenced Stocks:

More from MT Newswires


MT Newswires

MT Newswires

Market News, Commodities
Follow on:

Find a Credit Card

Select a credit card product by:
Select an offer:
Data Provided by