Chart of the day: Dalian iron ore’s repeat pattern
Yet again front-month iron ore futures contracts formed a small rounded bottom in June and July, this time against the level of 400 yuan per tonne (Fibonacci retracement support and support at the lower edge of the weekly Ichimoku cloud). This is a repeat of the rounded bottom through year-end and lies at a similar level to interim lows in the second and third quarters of last year. In turn, these can be seen as fractals of a larger rounded bottom that started in the fourth quarter of 2014. To complete the bigger picture, we would need a weekly close above a cluster of resistance levels around 560 yuan, hopefully before the end of the year. Note that Singapore’s contract, priced in US dollars, looks similar.
Nicole Elliott is a technical analyst