Global mining index – Bearish RSI divergence, Oil divergence

S&P/TSX Global Mining index was closely following oil prices until mining index diverged in early June.

Since then, mining index has somehow managed to avoid losses despite drop in oil prices.

However, we see a bearish price RSI divergence on the daily chart of the mining index. Hence, prices may converge again with oil.

The index could test rising trend line support seen around $63.00. Bearish invalidation is seen only in case of a day end close above 69.68