Iron ore and Iron stocks - can we expect a rebound?
Updated
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.
FEF1!FMG (Australian Iron Giant)CIA (Australian Mining Company) - in the main chartVALE (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.
Trade active
Iron ore still going lower. But, iron stocks spiked up.If iron does not move up, expect a sharp drop soon!!
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