INK Canadian Insider Index eyes key 1260 level

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 popped as high as 1290.99 before slicing through supports in the 1270s to close at 1259.08. The Index lost 21 points for a loss of 1.6%, as it recorded its first decline in three weeks.

Support is now at 1251 and 1241. Resistance is at 1260 (which marks the downtrend line it briefly overcame to the upside) and 1269.

RSI dropped to 43.23 for a loss of 12.6 points or 23%. MACD lost over 5 points to finish at -0.03. Without a strong push early this week, MACD could move back onto a sell signal. For now, MACD sits on the cusp.

Despite the week's pullback, the INK CIN has still recovered 3.6% of its 5.8% February decline. The 1260 level is key - above it, the Index can make hay. The longer the Index stays below it, the more it is vulnerable to further weakness.

If the INK CIN can merely hold its ground in the 1260 range (and definitely above the 1251 level) this week, it would likely find itself in position to move higher and challenge the 1290 level once again. For I am forecasting a strong rebound for heavily oversold and heavily shorted mining stocks in the middle of March, an event that would be a big boost to the Index.