RIO smashes support as big iron sinks

Big iron is sinking fast. BHP is down -1.8% at a new post-GFC low. RIO is even more significant taking out its post-GFC low down -1.6%. FMG is still floating on hope as it again wrestles with $2 down -2% when it should be -20%:

A closer look at the RIO chart shows how much further it has to fall. The daily chart has another busted descending triangle:

And the monthly chart has no supports right down to the GFC lows:

I see RIO at least halving from here. Dalian has opened and immediately dumped 1.5%.

Big gas is also selling today with WPL down marginally, OSH and ORG are down -1.6%, STO is down -1.2% and LNG -2%:

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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.