CIA - Blue Sky Days
Champion Iron (CIA ASX analysis) has been in a long term consolidation pattern since July 2021. You can see that it has now been in the $7.80-$8 range for the third time.
The pattern appears to be an ascending triangle - either way, we are seeing higher lows and supply move in at $8. Importantly CIA has cleared an area of support/resistance between $5.50 and $6.20 and the Stochastics favour a Blue Sky break out imminently.
The macro success of this will be somewhat governed by Iron Ore Futures which peaked in July 2021 (as did CIA). There's a strong area of support between $94 and $78 that may be retested on a pull back. A breakout from here would be with prices over $125. The stochastics setup on the Futures suggests the probability is with one further pullback before it breaks out mid year'ish.
2023 could be a very strong year for the Champ!
The pattern appears to be an ascending triangle - either way, we are seeing higher lows and supply move in at $8. Importantly CIA has cleared an area of support/resistance between $5.50 and $6.20 and the Stochastics favour a Blue Sky break out imminently.
The macro success of this will be somewhat governed by Iron Ore Futures which peaked in July 2021 (as did CIA). There's a strong area of support between $94 and $78 that may be retested on a pull back. A breakout from here would be with prices over $125. The stochastics setup on the Futures suggests the probability is with one further pullback before it breaks out mid year'ish.
2023 could be a very strong year for the Champ!
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