INK Canadian Insider Index now deeply oversold along with markets, oil

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 initially made an attempt to move above 1100 but quickly renewed its downward slide. The Index closed at its lowest point since late January, falling 0.9% or 10.6 points to 1078.56.

MACD fell 0.9 to -2.93. RSI fell 1.35 to 27.33. And here, we note RSI did not make a new low along with price, and that has potentially bullish implications. Indeed, our short-term momentum indicator may be hinting that the sell-off is overdone and we are due for a substantial bounce.

Support moves down to 1073, the site of the late-January intraday low from where the Index bounced nearly 90 points. That needs to hold for below that area, the next major support is 1040. Of importance, price is now below the lower Bollinger band (1077.73), and this further strengthens the case for an oversold rebound. Resistance is at 1100 and 1115.

Oil took another massive dive, falling 8.75% on the week for a total beatdown of 15.5% in just two weeks. US Markets pulled back 2.66%. Copper fared better, declining 'just' 2.2%. Sensing investor fear, gold shot up 2%. Its little brother silver closed up 0.08%, and, because of its industrial importance, it may also be hinting at a market and commodities rebound. World markets, oil, and copper are now deeply, deeply oversold and in a position where I look for them to begin a substantial 10+ day rally beginning within the next few days. A Copper/US Market snapback would also give the INK CIN a nice boost.

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.