Strong performance meets upside resistance - Metals & Mining Update

Summary: Since the initial Insights post, on June 6, following the series of positive signals in the metals and the mining stocks, there has been strong absolute performance and the initial upside targets for the move have been achieved. Further upside which could be significant is dependent on the trading levels breaching the resistance levels and the weekly scores turning more positive.

Performance since first alert (Positive Delta Reversal June 1) 

Anglo American Plc - June 15 close +6% , Peak +8% 

PICK (Global Mining ETF) - June 15 close +12.9% , Peak 13%

The June 6th the Quantmatix Insight post highlighted early positive moves in the metals commodities and also the mining stocks worldwide. We highlighted Anglo American as a key idea as it had multiple positive signals simultaneously on the Quantmatix system. The early move has now taken the sector to the first significant resistance levels and thus a good time to lock in short term gains.

If these resistance levels are successfully breached then there is a potential for a much more significant upside move. We await confirmation of this before becoming more bullish. 

As it transpired the strength during the period was in the industrial metals notably Copper, Iron and Zinc with the precious metals Gold,Silver and Platinum trading sideways with the existing negative longer term trends very much intact.

The same patterns exist for Silver and Platinum.

Conclusion: The early signals in the metals and the mining stocks and the associated ETFs proved to be a good thematic idea.

Where to from here?

The Weekly Scores provide a measure of the longer term context and these trends remain intact and negative. If the Key resistance levels which are just above here get successfully breached then there is scope for significant upside further moves but we await this before becoming more longer term bullish on the sector.