Positive sentiment surged last week

Positive sentiment surged last week

Our mining company market is showing signs of a recovery coming through. The Metals and Minerals Index has broken out of the downtrend that had been sending it in the opposite direction to the All Ordinaries and the Energy Index. That means money is coming back into the sector. The gold price has been the most obvious positive factor as it is in a steep uptrend, but there is increasing talk about a bright outlook for copper. The rare earth and lithium prices seem to have bottomed. All this is encouraging investors to be coming out of their trenches, as sentiment is improving.

Relating this back to the Sentiment Oscillator chart on page two, you can see that the line has just broken the downtrend that started nearly four years ago. That is very positive. Provided there is no reversal from this point in the coming week, we should have a period of further rising prices. It will be time to loosen the purse strings.