RIO breaking down?

Monday, 13 April 2015

Big iron is getting worse as the afternoon wears on. RIO is down 2.5% now and it’s chart suggests a retest of recent lows is on the cards as it takes out recent supports in the mid-$55s. The huge descending triangle pattern is not bullish:

There are supports in the mid $53s, $52s, $51s and then terminal support at $49.24:

Thence it is on to the GFC weekly low at $19.90. Which is exactly where I think we are headed.

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.