TECHNICAL ANALYSIS: TSX Lower After Earlier Hitting Near 6-year Intra-day Highs; Most Sectors Lower; Info Tech Led by Blackberry Bucks the Trend
The TSX twice - early morning and again early afternoon - hit near 6-year intra-day highs at close to the 15,120 level on Thursday, but was pulled back down each time - perhaps, on some profit taking - and was lower by 15 points at last look. The index posted an all-time closing high on Wednesday. The all-time intraday high was made back in June 2008 at 15,154.77.
Most sectors are lower, but Info Tech - largely due to a 10% increase in shares of Blackberry (BB.TO), after the company announced a smaller than expected quarterly loss - and Metals & Mining - as gold prices surge - are bucking the trend.
Blackberry gapped higher on the open, creating a breakaway gap. A breakaway gap occurs when the price of a stock is breaking out of a consolidation trading range or congestion area. A congestion area is just a price range in which the market has traded for some period.
The RSI (relative strength index) on Blackberry shares moved higher with price action reflecting accelerating positive momentum. The current reading of 76, is above the overbought trigger level of 70 and could foreshadow a correction.
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