Technical Update - Copper & Iron Ore
Kim Cramer Larsson
Technical Analyst, Saxo Bank
Copper. Massive sell-off in Copper past few weeks and close to test medium term strong key support at around 412-400. A minor bounce should be expected from here. Possibly back to around 430-440. However, a Daily close below 400 can fuel further sell-offs down to around 360-350.
Iron Ore formed a Double Top like pattern with a potential price target between 128 and 120. The pattern was confirmed with Friday’s heavy sell-off taking the Iron Ore below key support at 143.23
Followed through during Monday trading pushing below what seems to be the Bear/Bull Pivot level around 132.60 and below the falling 200 daily SMA.
RSI below 40 with no divergence and Bollinger bands expanding. All is set for lower levels . No strong support before around 107.80.
Some Pullbacks in an effort to test Bull/Bear Pivot level should be expected but Bulls are not likely to be successful in pulling Iron Ore back above the Pivot and less likely to pull it back above 146.60 which put the scenario on neutral.
Quarterly Outlook Q2 2022
Quarterly Outlook Q2 2022: The End Game has arrived
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Productivity and innovation have never been more importantAs the world economy hits physical limits and central banks tighten their belts, could equities be facing a 10-15% downside?
The great EUR recovery and the difficulty of trading itIf the terrible fog of war hopefully lifts soon, the conditions are promising for the euro to reprice significantly higher.
Tight commodity markets – turbocharged by war and sanctionsWith supply already tight, commodities keep powering on. But will it last for yet another quarter?
Between a rock and a hard placeGeopolitical concerns will add upward price pressures and fears of slower growth, while volatility will remain elevated.
The Great ErosionInflation is everywhere and central banks try to combat it. But will they get it under control in time?
Australian investing: Six considerations amid triple Rs: rising rates, record inflation and likely recessionWhile global financial markets are struggling in an uncertain world, the commodity-heavy Australian ASX index is poised to keep a positive momentum.
Cybersecurity – the rush to catch up with realityWith the invasion of Ukraine, governments and private companies are rushing to reinforce their cyber defenses.