The benchmark stock, BHP Billiton, the world's biggest diversified resources group, saw its stock price in US dollar terms peak out in the latter stages of 2010. Given the wobbles in the global economy, the fall from there has been relatively modest, from around US$26.00 a share to recent trades around US$19.00. Vale, the world's No 2 miner by market value, has seen its stock price fall by just over 50%, to current levels around US$17.00 a share.

Over the past 12 months, Vale and Anglo American have underperformed, probably on the back of a heavier exposure to developing markets, where regulatory uncertainty has been on the rise, over the past two years, in particular. This week in Johannesburg, outgoing Anglo American CEO Cynthia Carroll decried a number of factors that had contributed to uncertainty in this country, and appealed, in effect, for improved leadership at all levels.

Eoin Treacy's view The mining sector has been underperforming for at least the last 18 months as fears over slowing global growth, Chinese monetary tightening, costly expansion projects and regulatory uncertainty weighed on prices. Since the odds are increasingly in favour of a revival in Chinese urbanisation projects, a tailwind for the sector may be developing.

The Blackrock World Mining Trust currently trades at a discount to NAV of more than 10%. It found support above the September lows from early November but will need to sustain a move above 600p to confirm a return to demand dominance beyond the short term.

BHP Billiton is an S&P Europe 350 dividend aristocrat and yields 3.66%. It has base formation characteristics but will need to sustain a move above 2050p to confirm a return to medium-term demand dominance. Rio Tinto has also rallied and is testing the upper side of its six-month range.

Antofagasta found support in the region of its 200-day MA three weeks ago and a sustained move below 1200p would be required to question medium-term scope for continued upside. Teck Resources rallied back above its 200-day MA this week and has broken its almost two-year downtrend. A sustained move below C$31.50 would be required to question medium-term scope for further upside.

Xstrata and Glencore found support in the last few weeks and have rallied to test their medium-term progressions of lower rally highs. Anglo American remains in a medium-term downtrend and will need to break the progression of lower rally highs to check the downward bias. Vale SA also remains in a medium-term downtrend but has lost momentum somewhat. It will need to sustain a move back above the MA to suggest a return to medium-term demand dominance. Freeport McMoRan dropped abruptly yesterday; returning to test the psychological $30 area. While it steadied somewhat today, a clear upward dynamic will be required to check the downward bias.