RIO joins the rout as commodity sentiment breaks

David Llewellyn-Smith

Monday, 1 December 2014

RIO today:

It’s still 50 cents above its 2014 low and has a few technical supports in the way before it gives way like BHP:

Sadly, I do not expect the supports to hold next year.

Meanwhile, FMG also suddenly finds itself just 4 cents above its post-GFC low, having just traded below it:

It’s interesting to note that this is happening despite Dalian iron ore futures rallying back to neutral from sharply down earlier. It appears that it is sentiment that has broken today.

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.