INK Canadian Insider Index gets overbought, tumbles to 1296.53

Thank you for joining us in a weekly technical look at the mid-cap oriented INK Canadian Insider (CIN) Index. In a holiday-shortened trading week, the Index leapt as trading began on Tuesday and notched a brand new all-time intra-day high at 1319.29. However, it corrected sharply from its heavily overbought position and ended the week below the key 1300 level. In all, the Index fell 1.5% to close at 1296.53, wiping out the prior week's 1.3% gain.

RSI plunged to 51.25 for a loss of 21.73 points or 30%. MACD tumbled 4.2 points and returned to the red as it closed at -2.26. MACD also triggered a sell signal.

Support is now at 1293 and 1280. Resistance moves to 1300 and 1305.

The Index's ascent was cut short when its momentum indicators went overbought too quickly. Indeed, RSI soared to 73 and it has not operated in that territory since way back in November 2017. That said, all is not lost for the bull side. I think we may well see some more basing over the next week or so before we see the INK CIN make another charge above 1300 that finally succeeds in holding its gains.