INK Canadian Insider Index rises again, but resistance looms above

Thank you for joining us in a weekly technical look at the mid-cap oriented INK Canadian Insider (CIN) Index. Last week, the Index tacked on another 9.1 points to end at 1153.11 for a gain of 0.7%. Over the last 2 weeks, it has climbed 3%.

MACD moved up to 0.75. RSI rose to even more elevated levels with a 3.17 point gain as it reached 78.34. It is also worth noting RSI has not been this high in many, many months.

Support is at 1127 (20-day moving average) and 1140. There does appear to be resistance above in two clusters at 1160-1170 and 1180-1188. Indeed, 1170 is where its long-term downtrend line falls (dating from last June), while 1188 is the location of the Index's 200-day moving average).

Copper had another outstanding week, surging 1.88% and besting all major indices. The base metal has now risen nearly 10% since the start of February. As copper is a leading indicator for the markets and inflation, I think it bodes well for risk-on stocks and seems to confirm my bullish forecast for Q1 overall. We could see another week or so of upside for stocks before taking that March breather I mentioned last week. Looking further ahead, it might pay off to have some cash handy to deploy in mid-to-late March because my own proprietary signals suggest that is when we may see another great buying opportunity in the commodity and resource sector.

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.