INK Canadian Insider Index follows commodity weakness, falls 2.3%

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 was rejected one last time at 1146 resistance and rolled over, plunging through support. By week's end, the Index had tumbled 26.37 points or 2.3%.

MACD slipped nearly 3 points to -4.25. RSI, our short-term momentum indicator, skidded 40% or 19 points to 29.43.

Support now drops to 1093 and 1063. Resistance moves down to 1125 and 1146.

The Index had a tough week but duly followed copper which lost 2.69% (after clawing back 1.5% on Friday), crude oil (down 2%) and gold miners which tumbled over 4% (a sector I thought was close to rallying). Importantly, the INK CIN sliced down through its lower Bollinger band. In the past, such an event was a catalyst for a trend change or at least a strong rebound. The Index, copper and gold miners are heavily oversold and are likely to see a substantial rebound in the coming weeks.

That said, we could experience a few more days of weakness or balancing before the elastic band begins to snap back. Investors may, however, take some optimism from the Venture, home to speculative and economically sensitive stocks. It fell just 0.70% and has been showing some relative strength of late.

The INK Canadian Insider Index is used by the Horizons Cdn Insider Index ETF (HII), a 2017 and 2018 Fundata Fundgrade A+ (R) award winner.