Big iron hammered to key technicals

Friday 26 June 2015

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

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:

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

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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.