Iron ore futures set for another visit below $100?
SGX iron ore futures look set for a potential push below $100, breaking a series of downside supports over the past two sessions.
Friday brought a bearish break of the symmetrical triangle futures had been trading in over recent weeks. That was followed up today with the price slicing below $103.50, the low struck on June 11.
With momentum building to the downside and fundamental backdrop darkening due to continued woes in China’s property sector and unseasonably elevated iron ore inventories being held at Chinese ports, the risks look skewed to the downside in the short to medium term.
Traders could sell the break targeting a retest of $97, where futures bounced five times earlier in the year. A stop loss above $103.50 would provide protection against reversal.
DS
Friday brought a bearish break of the symmetrical triangle futures had been trading in over recent weeks. That was followed up today with the price slicing below $103.50, the low struck on June 11.
With momentum building to the downside and fundamental backdrop darkening due to continued woes in China’s property sector and unseasonably elevated iron ore inventories being held at Chinese ports, the risks look skewed to the downside in the short to medium term.
Traders could sell the break targeting a retest of $97, where futures bounced five times earlier in the year. A stop loss above $103.50 would provide protection against reversal.
DS
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