“Eoin made am extensive revision of materials stocks last friday. Whenever you have the time, could you please comment about the prospects/charts of Vale and Freeport? Thank you very much for your help and valuable support.”

Eoin Treacy's view Thank you for this question which others may also have an interest in. My intent on Friday was to highlight companies in the materials sector that were returning to a position of outperformance relative to the wider market.

Such has been the decline in many high profile shares that time is likely needed in order for them to build support before reasserting their uptrends. By contrast the materials sector has been mostly rangebound for a number of months and it is particularly noteworthy that there is such commonality at present. The firmer tone across the sector suggests it is under accumulation.

VALE's US ADR has stabilised above $15 but will need to sustain a move above the 200-day MA, currently in the region of $20, to indicate a return to demand dominance beyond the short term.

Freeport McMoRan (3.19%) has been ranging mostly above $37.50 for six weeks as it unwinds the short-term overbought condition. A sustained move below that level would be required to question medium-term scope for additional higher to lateral ranging.