In this post, I'm just going to show the buy signal that has developed in the TSX Bullish Percent Chart.
I actually posted this chart a little over a week ago, and I showed that it was getting close to giving a buy signal. However, this statement proved to be premature, as one should always wait for confirmation, which, in this case, involves the RSI crossing back into non oversold territory. The good news is that this confirmation has just arrived:
As you can see in the above chart, when the RSI dips into oversold territory, and then subsequently leaves oversold territory, a buy signal is generated. The last three signals have proven to be extremely profitable.
Please click on the chart to see a larger image. Also, you can see a live version of this chart for free at all times by going to my public chart section, which can be found by clicking on the link in the top right hand corner of my site. This chart is located on page number 5.
If this signal turns out to be accurate, the TSX will likely be at much higher levels in the weeks ahead. If you agree or disagree with my analysis, I would like to hear from you. Thanks for stopping by.