Technical forecast for SXF

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S&P/TSX 60 took a dive just as we noted being overbought on the daily chart & warned of risks for a sell off this week. We hit our buying opportunity perfectly at 720/719 to bottom exactly here. A bounce is unlikely to go too far with resistance at 724.70/90 but above here look for a selling opportunity at 728.00/20.

Good support at 720/719 could hold the downside again today but longs need stops below 718. A break lower cannot be ruled out and could target support at 715.70/60 then a buying opportunity again this week at
710.80/30.

Jason Sen began his career in the options pits on the trading floor of LIFFE in 1987 at the age of 19, making markets on his own account. In 2001 when the trading floor closed he successfully made the transition to day trading on computer screens. Jason always had an interest in technical analysis throughout his trading career but began to study this area in depth from 2006. www.daytradeideas.com has established itself as the leading provider of... More