Eoin Treacy's view

Australia – bounced from the psychological 5000 level in late August but ranged lower over the ensuing month to retest it. The Index rallied this week to break the near-term progression of lower rally highs and, while somewhat overbought, a sustained move below 5100 would be required to question the reversionary rally.

The Australian Dollar found at least near-term support in the region of the 70¢ level from late August and a reversionary rally is also evident which corresponds with increased foreign investor interest in the Australian stock market.  

Lundin Mining has been among the least volatile mining shares but has not been immune to selling pressure and returned to test the lower side of its medium-term range over the last few months. Today’s news that Glencore is cutting back on mining zinc has been a bullish catalyst.

Boliden’s is primarily a zinc/copper miner and unwound its entire breakout over the last few months before today’s rally.

Nike’s uptrend has picked up pace and it is now more overextended relative to the trend mean that it was before the August pullback. As a result of the increasing potential for mean reversion it is probably more risky today than it was in late August.