TECHNICALS – CLUSTER OF STOCK SELL SIGNALS GENERATED IN RESOURCES SECTOR

Last week’s Wire highlighted that select key oil stocks had generated technical sell signals in a cluster which flagged the energy sector as having reached a (negative) turning point and indicated a trend change was underway. (VIEW LINK) A “cluster of stock sell signals” has also been generated by the key resource / mining stocks which provides additional weight to the view that the resources / energy sectors of the Australian market have turned negative (from a technical perspective). Since mid-March, 11 stock sell signals have been generated. The heavy concentration of key stock technical signals in a sector has been effective previously in identifying sector trend changes.