The TSX-Venture Has Begun Its Next Leg Higher

graph of stock market

 

This is the longest win streak for the TSX-V since April 2016 (9 sessions) and more importantly the current rally broke out of a downtrending channel which can be interpreted as a bull flag pattern. The August-December pullback was a garden variety 15% correction which found support at the 38.2% Fibonacci retracement of the entire January-August rally. Perhaps most importantly the correction by time (4 months) should have built up enough potential energy to fuel the next leg higher which could very well surpass the 2016 rally (82%) in both magnitude and velocity.

Zooming out to a longer term chart it’s not difficult to see the upside potential which exists after major long term bottom was put in place in January 2016.

Silver,

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