The Canadian Technician

Welcome to "The Canadian Technician"

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Welcome to the Canadian View of the markets. The goal of this blog is to add analysis of Canada within the world markets, the strong sectors and stocks within Canada, and general commentary on the market.

I will discuss stocks above $5 on both exchanges.

In general, I like relative strength indicators to help find sectors of the market to be invested in. Usually this is indicated in Purple on my charts. Purple is reserved for the SP500 comparison to the ticker we are analyzing. My Acronym for this is SPURS to differentiate from a ticker's internal RSI as defined by Welles Wilder.

Where possible, I will attempt to explain concepts of technical analysis so the reader can understand and use different indicators to help themselves.
Currently,
The overall market is under pressure from global forces. Here are the weekly charts of the TSX and the Venture exchange, the CDNX. With all the indicators and oscillators confirming the current downward direction, caution is in order. THe $TSX next major support level is around the 10750-11000 level. We would like to see that hold.
TSX Weekly

For the CDNX or Venture exchange, the trend is down as well.
CDNX Weekly
Lastly, one of the most informative charts in Stockcharts is the Bullish Percent Index. 
TSX BP Weekly
Currently, this chart is under 50 % and it is hard for the market to go higher when most stocks are on a sell signal. Notice when the MACD is below zero, how negative it can be. The Full Sto's can give us an early entry when they break above the 20 line.

To profitable trading,

Greg Schnell, CMT
Calgary, Canada

 

Greg Schnell
About the author: , CMT, is a Senior Technical Analyst at StockCharts.com specializing in intermarket and commodities analysis. He is also the co-author of Stock Charts For Dummies (Wiley, 2018). Based in Calgary, Greg is a board member of the Canadian Society of Technical Analysts (CSTA) and the chairman of the CSTA Calgary chapter. He is an active member of both the CMT Association and the International Federation of Technical Analysts (IFTA). Learn More
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