Bulls stampede big iron

Friday 4 March 2016

There is no disputing it, price and chart action is bullish big iron no matter what the fundamentals say. BHP is up again today 1.8%, RIO 1% and FMG 0.7%. Dalian is off to the races again as well up three points from overnight:

All are flying but the BHP chart is especially bullish:

That’s a bullish double bottom, and bullish head-and-shoulders bottom or, if you prefer, a bullish cup and handle formation, though the last two have not yet quite broken out.

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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.