Technical Buy Signals Emerge in Resources Sector

Over the last month out of the top 20 ASX stocks - 12 stocks have generated technical buy signals, and overall a total of 39 stock technical buy signals have been generated. This is a positive technical market momentum indicator. The sectors that experienced an upward shift in technical ratings during July included financials (including the A-REITS), health, and consumer staples due to key stocks within these sectors generating technical buy signals. It was highlighted a week ago that there were early, tentative signs emerging that the resource sector of market may have the potential to form a base. Technical buy signals have since been generated in the resources sector/stocks over recent days. Until this week the stock buy signals recently generated had been confined to the industrial segment of the market. There are now indications from a technical analysis perspective that a turnaround is starting in the resources sector.