TECHNICAL ANALYSIS: Magnificent Seven For TSX; Most Sectors Up, Energy Drives Surge
The TSX is up around 45 points and near session highs late Monday afternoon, climbing to 6-year highs and up for the 7th consecutive trading session. Most sectors are higher, driven by Energy and Financials, but Metals and Mining are capping gains.
The S&P/TSX capped Energy Index hit a 3-year high on Monday, and is poised to test resistance near the June 2011 highs near 323, buoyed by higher oil prices today. Support on the energy index is seen near the 50-day moving average at 311.00.
Momentum on the Energy index is robust with the MACD (moving average convergence divergence) index generating a buy signal. This occurs when the spread (the 12-day moving average minus the 26-day moving average) crosses above the 9-day moving average of the spread.
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