Sunday, January 20, 2008

S&P/TSX Canadian Industrials Index Analysis for 01.20.2008


Monthly chart shows 5 waves up into 128.66 high where 2 dojis gave a clear warning sign. The high was also right at 1.786 fib resistance. The index found short term support off a key LIS and prior resistance of 95.74. Will this "old resistance becomes new support" hold? IF there is 5 waves up, THEN look for a 3 wave abc corrective pattern to be traced into at least the .618 fib level. Look for continued weakness and the .618 fib level target to be reached in the months ahead.

Weekly chart shows a down trendline in place. Index is currently well below its weekly moving averages. No buy signal/pattern evident on this timeframe.

Daily chart shows the current move down over the last 2 weeks to be impulsive in nature. IF this is wave 3, THEN we still have waves 4 and 5 to look forward to. Look for continued weakness in the weeks ahead. No buy signal evident in this timeframe.

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