FP Markets Insights: Mining stocks getting back some attention

3 March 2016: SYDNEY - Local mining stocks are finally getting the much needed attention as investors start to look at the resources sector again.

“The agreement between BHP and the Brazilian government has put a bid under the stock and the resource sector,” said Gary Burton, senior technical analyst at FP Markets.

“We also some strong moves on the iron ore price, so that is helping boost the mining stocks as well."

However, Burton pointed out that “Although oil has also found support, the largest Australian oiler – Woodside Petroleum’s (WPL), price weakness continues with the stock having a strong technical price resistance level of $28.00.”

 According to Burton, there still seems to be great caution in the market with a mixed momentum now that the reporting season has almost concluded.

 But he pointed out the fact that, “Now that the all important 5000 level has been breached, we may see some continued price momentum.”

 He said the much anticipated US jobs data (due this Friday) will be a real catalyst and could push the market higher if it comes out positive.

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