Important week ahead as INK Canadian Insider Index tumbles 1.6%

Thank you for joining us in a weekly technical look at the mid-cap oriented INK Canadian Insider (CIN) Index. Last week, the INK Canadian Insider Index continued its prior rally climbing 20 points higher to 1170, before giving up those gains and more. The Index closed at 1133.74 for a loss of 18.21 points or 1.6%. Though it's worth noting part of the decline can be attributed to the heavy 18% loss by Index constituent Bombardier (BBD).

MACD rose 1.3 to 4.9 and has now moved up four weeks straight. However, RSI slumped 4.5 points to 37.8 and remains vulnerable while below the critical 50-point level.

Support is now at 1110 and 1125. Resistance is at 1150 and 1160.

It was not the strong week I expected for the INK CIN. Indeed, it strongly underperformed the US markets which rallied over 2%. In addition, the Index's 1.6% loss wiped out the entire 1.5% gain from the week prior. Also worth noting is that while MACD and RSI maintain some positive divergence, these momentum indicators remain locked below their downtrend lines which extend back several months. What to watch for? The Index will need rally fairly soon and in doing so RSI needs to rise above 50 or even 60, for the INK CIN to avoid a return trip back to its lows. Further, bulls will want to see the price of copper reassert its strength.