Cycle Trading: Could the TSX Be Your Cup of Tea
|The Toronto Stock Exchange printed a bearish reversal on Tuesday.
Tuesday was day 33 for the TSX, placing it in its timing band for a daily cycle decline. The bearish reversal eases the parameters for forming a swing high. A break below 16139.77 forms a swing high. Then a close below the 10 day MA will confirm the daily cycle decline.
The TSX has been in a multi month consolidation setting up a potential cup and handle pattern. The anticipated decline into the daily cycle low will allow the TSX to complete the handle portion of the consolidation pattern. Also, the TSX has established a daily uptrend. If the DCL forms above the lower daily cycle band it will remain in its daily uptrend.
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