The attached chart is relative ratio of equally weighted diversified miners vs the JSE Top 40 Index. When trending higher, it means that miners are outperforming the broader market while a downward trend represents underperformance vs the broader market, particularly large caps (JSE Top 40 Index).
On a medium term basis, a large megaphone pattern has developed while in the short term, an upward trending channel is visible. This channel may be forming part of a larger bear flag where the ratio could lose support it's incline in place since August is breached on the downside. This may suggest that miners could return to underperforming the broader market on a relative basis.
On a medium term basis, a large megaphone pattern has developed while in the short term, an upward trending channel is visible. This channel may be forming part of a larger bear flag where the ratio could lose support it's incline in place since August is breached on the downside. This may suggest that miners could return to underperforming the broader market on a relative basis.
