by Chris Becker
Coming up to lunch in the Asian session and iron ore stocks are taking a pummeling.
Fortescue (FMG) has gapped down nearly 5% on the open and is looking for new lows:
On the daily chart its taken out its previous low and theres daylight to support at $3.00 to $3.50 per share:
That last tumble was when spot iron ore collapsed from ca $170 to $110 per tonne, a relatively similar move, but this is a much larger squeeze on margins:
Rio Tinto (RIO) after having a hard time on the London market last night has also gapped down over 2%:
It remains on track in its downtrend as well:
Gold and energy stocks are up, but this isn’t enough to arrest a near 1% fall on the ASX200, hovering at a two month low:
Indeed the 2 year uptrend is under threat here, but there is still some wriggle room:
