More downward motion in the stock markets over the past week. There was a lot of good news released during the week but the few misses were enough to scare off investors. I haven’t done any technical analysis on the site here in a while so I thought that with this clear trend downward we should take a look at the TSX chart to see if we can figure anything out.

It will be an interesting coming week because as you can see from the blue lines indicated an upward channel that has tested the top and the bottom but has stayed within this range since mid-September. Now we are testing the lower end of that range so this could mean a confirmation of the trend and a rise sooner. If that’s the case it looks like we could be going towards the orange line at 10,865.

The other thing to look at is the MACD that is strongly in the oversold side of things and has been for at least 2 weeks. This would usually indicate that buyers should be coming back into the market. If we see the support line being confirmed and the MACD moving towards neutral to positive, then we should see a bounce back, otherwise it could be “watch out below!”

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