Further increases in iron ore prices are predicted. Enrico de la Cruz at Mining.com reports:
Singapore-based steel and iron ore data analytics firm Tivlon Technologies is keeping its price forecast of $150 a tonne by October.
“We expect the launch of infrastructure projects in China to peak in the third quarter and further uplift demand for steel,” it said in a note.
Narrow consolidation is a bullish sign, suggesting another advance.
The Materials index continues its up-trend. A Trend Index above zero would signal increased buying pressure.
Financials continue to test resistance at 6450 but face headwinds from the housing market and construction.
The ASX 200 is testing its 2007 high at 6800. A rising Trend index indicates buying pressure. Penetration of the rising trendline on the index chart is unlikely but would warn of a correction.
We maintain a high level of cash in our Australian Growth portfolio because of expected headwinds from housing and construction.