Big iron hammered to key technicals

Big iron ore is getting pounded today as the broader markets weakens and the reality of Chinese steel weakness keep the pressure on. The technicals are looking a little scary for the big boys. RIO is off over 2% and is approaching key technical support levels

RIO

That’s a rather ugly looking series of bearish descending triangles. The next two support levels are the lows at $53.69 and $52.69. On the longer term chart, terminal support is just under $50:

3

And yes, I do expect RIO to reach $20 some time in the next year or two. Better buy it for the dividend. Pfft.

BHP is down 3% today and it’s weekly chart is rather similar:

bhp2

The longer term chart is quite as bad as RIO:

Capture

$20 is a no brainer to my mind but how much lower ex-South32? Perhaps $15 as a target?

FMG is holding up a bit better down 4%. It’s weekly chart is less obviously bearish:

fmg

But longer term is a shocker, trading close to mega-death support at $1.78:

lhkb

I doubt this is the big breakdown given iron ore still isn’t falling but given my outlook for the metal it is only a matter of time.

 

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