Exactly a week ago, we looked at the chart for Dalian iron ore futures, which were forming a rounded bottom. Its similarities with the chart for Shanghai rubber futures are quite extraordinary, with this year’s sell-off slowing since April and forming a potential rounded base since May. This lies just ahead of the interim lows in 2015 and 2016, continuing the series of marginally higher bases, this time around the most extreme Fibonacci retracement support. Prices in Tokyo have also based since June, adding weight to what ought to be a global tendency. Historical volatility remains at its long-term mean, so we might conclude that it is business as usual. When momentum and the MACD turn bullish, expect a rally to 15,000 yuan (US$2,220) to 15,550 yuan per tonne.