A large base has completed for iron ore, providing the platform for a more sustained bull trend, according to David Sneddon and this team and Credit Suisse in London.
Sneddon says significant gains have been posted for a range of commodity markets, in line with the broader rally in risk assets, and commodity markets thus remain centre stage for his technical analysis team. In the case of iron ore, the market has surged dramatically higher for a break above the top of the range of the past eight months at 692 and the completion of a large base (see Chart).
Sneddon is now looking for this to provide the platform for a more sustained bull trend. Resistance is at 733 and then 791.50 (the beginning of the large price gap from last summer). He will watch closely to see if this also improves the outlook for China, which still remains capped at key resistance.