Iron ore peaked at $60. Expect a sharp fall to test support between $50 and $52, typical of a bear market. Chinese housing price growth — a key driver of iron ore prices as illustrated last week — is slowing and likely to drag ore prices lower.
The ASX 300 Metals & Mining index is still on the up but likely to respect resistance at 3000, given the reversal in iron ore. Breach of 2750 would confirm a primary down-trend.
The ASX 300 Banks index ran into strong resistance at 8500. Declining Twiggs Money Flow highlights selling pressure. Breach of 8000 is likely and would confirm the primary down-trend.
The ASX 200 displays strong selling pressure, with tall shadows on the last two weekly candles. Twiggs Money Flow dipping below zero for the second time warns of a primary down-trend. Follow-through below 5700 would test primary support at 5600. Breach of 5600 would complete a broad head and shoulders reversal, confirming a primary down-trend.
4 Replies to “ASX 200: Banks run into strong resistance”
Banks and ASX 200 :
TMF now looks similar to Sept/Oct 2016 , when one should have bought.
Metals and Minerals :
I’d buy, on the TMF.
So much bearishness around – every man and his dog believing it can ONLY fall = so, it becomes a strong buy, therefore. Also, will the Chinese really allow growth rates there to fall this year, given the November Conference”.
“I never argue with the tape” – Jesse Livermore
ASX 200 teetering under selling pressure but not in bear market ( 5600 < ) at present.
I really enjoy the informative articles particularly the information about Australia where I invest on a relatively small scale..( small investor generally) I note the banks in which I have invested from time to time present a good opportunity to build wealth given the interest rate on deposits for people like me. The cycle appears to recede back to say $22-$25 and then as things improve back to between $30-$34…good money to go in and out with relatively little risk.?
Hi George, Not sure which cycle you refer to.
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