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

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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.

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This article appears in: Investing Commodities
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