TECHNICAL ANALYSIS: TSX Moves Higher; Financial Drives Gains; Momentum Turns Positive
The TSX is higher in afternoon trading, up near 50 points at around 14,730 and poised to test resistance near the 2014 highs at 14,765. Most sectors are higher, led by Financials and Telecom, but Metal and Mining bucked the trend dropping nearly 1.1% on Tuesday.
Momentum on the TSX has turned positive as the medium term MACD (moving average convergence divergence) index, generated a buy signal. This occurs when the spread (the 12-day moving average minus the 26-day moving average) crossed above the 9-day moving average of the spread. The index moved from negative to positive territory confirming the buy signal.
The RSI (relative strength index) which is a momentum oscillator that measures overbought and oversold levels is moving higher with price action reflecting accelerating positive momentum while printing near 60, which is on the upper end of the neutral range.
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