Australian LNGCommoditiesFeatured ArticleIron ore price

Mining and energy sector breaching terminal support

David Llewellyn-Smith
Monday, 17 August 2015
Advertisement

It’s not a pretty picture for those with shovels today. The major players in Australia’s listed mining and energy sectors have either breached or are approaching terminal chart support and for good reason.

From the top, BHP is down 0.6% and has a giant bearish descending triangle pattern with the price resting right on GFC closing support prices (I’m using monthly charts here but it’s similar on shorter time frames):

BHP

I full expect BHP to return to 2003 prices before the super cycle bust is over. RIO is down 0.6% today and has a virtually identical chart:

Advertisement
RIO

The full text of this article is available to MacroBusiness subscribers

$1 for your first month, then:
Cancel at any time through our billing provider, Stripe
Twitter Share
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.