Yes, we have turned bullish again on the CDNX after a bear market that started in March, 2011, has clearly run out of steam. The Index, which is rising out of a classic head-and-shoulders bottom, climbed another 35 points last week to close at 1571. In a situation such as this, the 10 and 20-day moving averages (SMA’s) can be expected to provide support on any pullbacks. A reversal to the upside in the 50-day SMA appears likely within the next couple of weeks which will further strengthen the bullish case.
Below is John’s updated CDNX chart with a target of 2000. We have a fascinating longer-term chart to show tomorrow as part of our Week In Review And A Look Ahead which will be posted from the Resource Show in Vancouver.
