Iron Ore to double dip

Iron Ore too….is yet to make a new higher high.

Last week’s intraday high of $132.30 remains shy of October ’21’s $132.60 high.

In addition, trading in Iron Ore futures, on January 13th, 2022 produced a bearish outside reversal day.

I see risk in Iron Ore equities. The bounces have been impressive and taking the ‘fat part’ of the trade should satisfy many.

The advance wasn’t accompanied with robust volume.

I think this market will hurt the latecomers who have bought in the past week.

Markets do that sort of stuff. Shaking out those who shouldn’t be there…..is part of a market’s modus operandi.

Intuition suggests that we’ll see a test towards or close to recent lows. Perhaps I’ll call it a ‘double dip’.

At that stage, we’ll watch for any new ‘lower lows’ or where we see a consolidation.

There are plenty of ‘gap-ups’ to back and fill and the recent rally in those equities gives many a second chance to exit.

For some, it could be a ‘get out of jail free’ card.

#fmg #rio #bhp #min #ironore

January 17, 2022

by Rob Zdravevski

rob@karriasset.com.au