Canadian junior mining index building up steam
December 18, 2007
Greetings investors.
I’ve got a wait signal from my reading of the candlesticks on the Canadian Venture Exchange (CDNX) index chart for the TSX. The index is heavily-weighted towards junior mineral exploration.
The chart signals themselves though suggest the index may be building some slight momentum. The MACD line is essentially flat along the zero line; however, there is still some accumulation going on.
Risk intolerant investors will want to stay in cash, while the gamblers among us will want to take a position now. For the rest, it’s a good idea to have your wallet at the ready for if and when that MACD line spikes up into a rally.
I think a dip below zero will be bearish, in which case I’d wait till it dives deeper into oversold territory before buying. See the annotated 90 day chart below.
Kb
The BarkerLetter on December 18th 2007 in Commodity investing
