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Toronto Venture Exchange - target area of 13.000 points

Update index at 21:30
Index Toronto such as U.S. counterparts, the Dow and the S & P 500 had the same technical structure at the end of August, mid September. Chartist bearish structure type E-T-S (Left Shoulder - Head - Shoulder right). The Toronto index was the first resistance was broken diagonal shoulder Left on August 27, followed by the S & P 500 September 9, followed by the venerable Mr. Dow Jones September 13. This technical structure similar to the three indices was somehow the state of anxiety or indecision that prevailed during the summer on the stock markets.

On September 26th, I wrote this sentence in the analysis of the S & P 500, it can also apply to the TSX on August 27 last "the resistance zone diagonal E-T-S has been broken up and transformed by the negative voltage of the index in positive thrust upward, a tipping point had been reached ". The same bullish scenario has materialized on the TSX, the Dow and the S & P500 and this in an interval of three weeks, a tipping point had been reached. A strong upward movement is triggered later on these three indices, following the breakdown of these areas resistors. When several benchmarks or more titles in the same industry we have sent similar signals that we indicate the direction of movement he is bullish or bearish, it greatly increases the odds of the received message. And in the case of these three indices, the message we reported the breaking of a bullish pivot point very significant, the stock market in North America became bullish in the short term.

The target prospective the Toronto index is set at 13.032 points , that is to say, a potential further rise of more than 359 points, he has already added 97 points the index from my notes this morning, then the area of 13.000 points is around the corner ...

You've probably noticed on the first chart placement of 161.8% Fibonacci extension located at 13.065 points, attentive readers are starting to know my "Modus operandi. The extension of 161.8% Fibonacci is in sync with my target area of 13.032 points. This objective prospective 13.032 was obtained by calculating the differential between the top of April and the support area of 11.065 points, followed by plotting the difference to the breakpoint of the diagonal resistance of 27 August last located 11.800 points and you get this minimum target to reach.

12.297 to 11.065 = 11.800 + 1.232 = prospective target minimum 13.032 points

On the second graph, we also find that by using the trident Andrews as analytical additional area of 13.000 points corresponds to the main axis of the fork, this area is red on the graph represents the resistance of the previous index. In the logic of the dynamics of Andrews, the curve of the index must join the upper and lower channel it coincides with the area of 13.000 points.

Three different ways of calculating prospective targets, but the three methods converge towards the same goal area of 13.000 points at ± 30 points closely. So listen to the message of the graphics, but are still on the lookout ...

To view the previous analysis of the Toronto index, click HERE

Claude Bordeleau
The observer technical analysis of stock markets