Technicals | Dec 02 2020
Weekly Trend: Up
Monthly Trend: Up
Support Levels: 110.00 / 98.01 / 78.33
Resistance Levels: 142.80 / 158.90 (US$/t)
Reasons to remain bullish longer term:
→ Chinese demand remaining overall consistent
→ relentless production by the majors still in force
→ larger multi year [A]-[B]-[C] move north remains in play
→ price has remained robust throughout the 2020 global market turmoil care of Covid-19 pandemic
‘The other scenario to the above which is just as valid is that we already have the higher Wave-[B] locked in back in February. This would mean the recent high that locked in back in September is potentially part of the next 5-wave move north within a higher degree Wave-[C] . Regardless, we would still like to see a short to medium term breather continue to unfold from here to slightly lower levels.’
The more robust price action remains, the more we lean towards the scenario that the higher degree Wave-[B] has completed at the beginning of 2020 (see chart). The main reason for this is that the bounce since then has been strong and impulsive to the upside. So just in simple terms visually, it has that bullish look and feel to it.
Price gapped higher strongly last night, which put a stop to trading at 129.31 . And this post the gap higher move on the 13th November which was part of a bullish island reversal. We have also witnessed a gap being left behind at 108.90 on the 31st July. A gap that may still require filling, although I wouldn’t be holding my breath with price action looking so bullish at the moment. Nothing not to like here at the moment.
From a trading perspective, the ASX Iron Ore big guns in BHP, RIO and FMG are the stocks we keep an eye on. And all three have overall continued to perform well.
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