So far today we see the start of a potential correction in mining shares. The Relative Strength Indicator in the top window finds resistance at line -1- over the negative divergence. This implies that the mining sector is still in consolidation mode since November 2010.
We can expect the end of this sideways action and the start of a new trend when line -1- eventually breaks. The index might pull back to support at 3700 (the green line as a Fibonacci support level).
We view such a pullback as a buying opportunity for mining shares.
