J210 v J537: Relative to the General Retail Sector (J537), the JSE Resources Index (J210) has been an under-performer. On 30-April we saw the incline support going back to November 2018 being breached while the technical indicators show strong downside momentum (daily chart). Relative to prior periods (Nov-2017 and Oct-2018) the price has lost it’s 50-day moving average support with the MA starting to curl to the downside. What is also noticeable is the ‘shakeout’or sharp drop following the price decline. Similar price action may occur in the weeks ahead which would see the price trade toward the lower boundary of the channel that has been in place since January 2018.