Australian banks Australian LNG Australian Shares Commodities Gold Iron ore price

Fortescue falls off the cliff

David Llewellyn-Smith

Thursday, 13 April 2017

Dalian iron ore futures have caught a little bid today though they are still down

Big Iron has cratered with BHP and RIO -4% and FMG -7%:

FMG’s head and shoulders top is confirmed as the neckline is vapourised:

That chart says big downside ahead.

Big Gas is pulling back after its stellar run:

Big Gold is strong but appears to have more upside:

Big Debt is pulling back and my view is that iron ore is going to fall so far, so fast, that it’s also a sell as Australian risk is re-priced:

Have a safe and enjoyable Easter.

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.