TSX Metals Breaks Bottom Formation
Posted by nexvucapital on April 27, 2015
The ongoing rally in the Canadian Metals (began in January) continues to build as the TSX Metals broke above the 200 Day MA on Friday/Today…this is a reaction to the USD falling but it’s been a +4 year bear since January 2011. A bullish reverse head and shoulders bottoming pattern has been built since October 2014. We just broke above that and these types of bottoming formations usually indicate a good move to come and is measured by the reverse of the shoulder to the top/bottom of the head – this would take the index past 1000 which would mean we are at the start of the cyclical materials bull for this growth cycle. That makes sense if the easing in EU and China has the desired effect on global growth…we will see.