Iron ore and Iron stocks - can we expect a rebound?

24 Sep 2021

Charts look absolutely similar between iron futures and iron mining companies.

FEF1!


FMG (Australian Iron Giant)


CIA (Australian Mining Company) - in the main chart

VALE (Brazilian Iron minor listed as US depository)



Looking at Iron future's previous retracement - which is almost equal to 0.786, we may be in the oversold territory.



While CIA shows strong bullish divergence


FMG and Iron futures show bearish hidden divergence following strong bullish divergence.


Conclusion:

Good to open small position and wait for next leg up and pullback. Cut losses if new lower low is made.

23 Nov 2021

Dagangan aktif

Iron ore still going lower. But, iron stocks spiked up.


If iron does not move up, expect a sharp drop soon!!