Recovery in mining stocks means a better six month outlook

Looking at the lead indicators it is positive to see that the Metals and Mining Index has held its higher levels after breaching the six month downtrend. The same could have been said of the All Ordinaries had it not been sold down heavily on Friday, though it does seem to be in a sideways pattern now. The Energy Index is also moving sideways having had its own correction. Thus the charts on these three indices suggest a better six months months than we have just experienced. This perspective is confirmed by the Sentiment Oscillator, which has shown another improvement over the week.
Even though the higher A$ is eroding some of the gains in metal prices there is no reason to be negative now as the gold price continues to improve. Copper has had a strong week, as has nickel. The turning point in the mining shares was the first week in July. It looked tentative as it wasn’t in the shape of a bounce, so most people would have been waiting for stronger evidence, but that is coming through now. 

 WeeklyComm29July2017.pdf