A lot of sentiment is saying that May is going to be a down month for the stock market and while it may be true, we should take a look at the technicals to see if the match up with the fundamental weakness that is permeating the emotions of investors.

Both in the short term (3-month) and the longer term (12-month) there are channels upward but it looks like it’s hitting the resistance consistently which will likely mean pulling back to test the resistance levels.  The MACD seems to be stranded in the middle which suggests there isn’t going to be a breakout happening anytime soon because of the lack of momentum.  This should mean that we’ll be staying in the short term channel.

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