Cau­tion called for

Re­sources stocks looking to down­side and break­out po­ten­tial ei­ther way for BHP Bil­li­ton

Finweek English Edition - - Creating Wealth - COLIN ABRAMS colin@the­mar­ket.co.za Tech­ni­cal an­a­lyst

RE­SOURCES STOCKS have had a good run in re­cent weeks and we take a look at the JSE Re­sources 20 in­dex (Resi) to see if its price chart is giv­ing any clues to fu­ture di­rec­tion. We also look at re­sources gi­ant BHP Bil­li­ton, which has been fairly muted rel­a­tive to other re­sources stocks over re­cent months. It’s pre­par­ing for a sharp move. Traders are cau­tioned that re­sources stocks will be­come overex­tended over the short term.

Please note: For more rec­om­men­da­tions and charts by the au­thor on shares, stock in­dices and com­modi­ties please go to www.the­mar­ket.co.za.

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