Kingfisher Mining has been a star performer in the REO space

Catching up on three weeks of charts this morning in one session rather than each day enabled a fresher look at what is happening in the big picture. We had the meltdown that bottomed out in June and the subsequent strong rally in share prices that was rather surprising given that interest rate and inflationary concerns have not gone away. We can see this in last week’s performances as markets were sold down heavily.

The charting signals have been reasonably reliable of recent. The All Ords (XAO) has slumped back to the support line for an uptrend that started in mid-June. It remains to be seen whether it can hold this level. The Metals and Mining Index (XMM) has collapsed after hitting a resistance line and seems destined to fall to the lows seen in November 2021, and again in June 2022, of 4,800-4,900. That means there is not much more to go before this current slide is over. The Energy Index (XEJ) has continued to appreciate during these volatile times without any sign of turning down.

Last week Kingfisher came out with spectacular rock chip samples up to 40% REE in massive monazite mineralisation. While this is very rich you need to remember my earlier comments, expressed many times, that rock chip samples will always be higher grade than a resource grade. That is because they are very selective and designed to establish whether or not a prospect is worth pursuing. There is no structure or geometry involved. Nevertheless, grades like Kingfisher is getting are highly encouraging 

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