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Big iron is splitting up. BHP is the new whipping boy, down another -2% today and pretty much in free fall, RIO is flat but FMG is pouring it on up another 4.4%:
Let’s take a longer term view of BHP on the monthly chart:
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It’s not pretty. The huge and busted post-2011 descending triangle forewarned of a major de-rating. It’s now caught in a steep declining channel aiming for the GFC low at $18. My longer term target remains 2003, roughly half of where we are today.
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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.
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