Iron ore broke support at $60, signaling another decline. The medium-term target is $50*.
* Target: 60 – ( 70 – 60 ) = 50
Resources stocks lost momentum, with the ASX 300 Metals & Mining index respecting resistance at 3000. Twiggs Money Flow seemed to be recovering after a strong bearish divergence but has again slipped below zero, warning of selling pressure. Expect another test of primary support at 2700.
The big banks face selling pressure, with Twiggs Money Flow falling sharply. The primary down-trend on the ASX 300 Banks Index, having broken support at 8500, offers a medium-term target of 8000*.
* Target: 8500 – ( 9000 – 8500 ) = 8000
The ASX 200 respected resistance at 5800. Breach of 5700 is likely and would confirm another test of primary support at 5600*. Breach of 5600 would signal a primary down-trend, offering a target of 5200*.
* Target medium-term: 5600 – ( 6000 – 5600 ) = 5200