Technicals – no sign of a turnaround in resources sector
There is no potential for base forming emerging in the resources sector. The rebound off yesterday's lows has not altered the negative technical trend. It is a lower risk technical strategy to buy after stocks bottom out / and the technicals turn positive i.e buy on the upswing, rather than on the pullback. Although technical momentum indicators suggest that the resources sector is extremely oversold, there is nothing on the horizon that would suggest a turnaround is imminent. The major base metal prices also remain technically negative with no sign of base forming emerging. In the commodities area, the gold price is the only one that has the potential to generate a technical buy signal and is being watched closely. Over the last week, select gold stocks had generated technical buy signals, with it being a situation of the stock technicals leading the related commodity
Angela has over 30 years experience in the technical analysis field. She provides technical analysis coverage of major Australian and global stocks / key markets, including provision of a bespoke technical service to wholesale clients.