Technicals – Resources sector – next downward move underway

New technical sell signals have been activated in rapid succession this week by major resource stocks. This heavy concentration of sell signals is a negative momentum indicator for the resource sector outlook from a technical perspective, and indicates that the next downward move is underway. A month ago our Wire (VIEW LINK) initially flagged that the resource sector outlook had turned negative due to major resource stocks having generated technical sell signals in a cluster. The first indicator of a turnaround in the resource sector would be a notable increase in the number of resource stocks showing the potential to form a base, and this is notably absent at the moment.