TSX, Setting Up To For Possible A Alteration In Perspective!

Hello Traders Investors And Community,

Welcome to this analysis where we are looking at TSX 4-hour timeframe perspective which is showing up some quite interesting signals at the moment. As the main market has recovered from the corona-breakdowns seen this year the meaningful question is now if these recoveries are fundamentally backed to follow-up into a healthy market environment or if the bear-market-pressure will increase again similar to those price-actions contributed this year, as the bear-market is still not confirmedly over and many major indices trading below all-time-high conditions as well as the stock market, in general, we should not keep the bearish scenario by side not mentioning the huge divergences between real economy and stocks as the rallies aren't necessarily backed while smart-money is staying out retail is rushing in which can reverse the environment also in the other direction.

Looking at my chart now you can watch there that the index is moving in this preliminary important ascending-channel marked in grey where it consolidates more or less to the upside forming some uptrends. Furthermore, the index has still a major gap at the upside within the 17000 levels marked in orange waiting to be filed the next time. This gap-fill will be highly possible as others have shown similar formations and such gap-fills are likely to be filled shown in past price-action evidently, but what is also a fact is that after such gap-fills often supply enters the market and the price firstly makes a smaller when not bigger pull-back to the downside when bulls aren't strong enough in this level, such a mechanism can also happen here as it is marked in my chart.

When the index shows bearish pressure right after the gap has been filed and tests the lower boundary of the ascending-channel it needs to bounce there and confirm it as support when considering further bullishness otherwise when this does not happen and the price moves below this boundary the possibility for bearish pressure to the downside increases heavily this will show up also with a confirmation below the 60-EMA in black and continued bearish movement, overall this will form a bearish environment till there is solid support found which can reverse the situation and back the index up when this happens we will see how the dynamic is playing out and if there can be a reversal to the upside, taking these factors into consideration we should not ignore the bearish perspective as also new corona-fears can hit the market, therefore, it is important to be read on it to not fall apart when it is showing up.

In this manner, thank you for watching the analysis, support for more market insight and all the best.
"There are many roads to prosperity, but one must be taken."

Information provided is only educational and should not be used to take action in the market.

Comment:

ANALYSIS UPDATE: TSX pulled back off the major resistance cluster to emerge with the initial pullback wave approaching the EMA supports.

Since TSX continued with the approaches of the important EMA structures it accelerated with heavy volatilities.