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Actually, it is steel that is approaching critical support. Shanghai rebar futures:
If we fall decisively below 3200CNY then the six-year price support is broken. Making matters worse is the ugly descending triangle pattern.
If these levels are breached then a return to the unfathomable of 2015/16 opens up.
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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.