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This index consists of 20 precious metals shares traded on the Toronto Stock Exchange. The bottom section of this chart is the index itself coupled with a 150 day moving average in Red. The middle section is a Relative Strength Comparative between the index and the Gold price in Canadian dollars ( TSX-Gold divided by the Gold price in Canadian dollars). We use this indicator to help us determine whether Canadian Gold shares represent good value relative to the Canadian Gold price. Given the number of developing companies which now make up the index, the channel looks to be changing formation as these companies grow their respective market capitalizations. The top section of this chart is a standard 14 day Relative Strength Index where anything under 30 represents oversold and anything over 70 indicates overbought and is used primarily to gauge market sentitment.
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