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.
Colin Twiggs is a former investment banker with almost 40 years of experience in financial markets. He founded PVT Capital (AFSL number 546090), which provides income and growth strategies to wholesale clients.
Colin also co-founded Incredible Charts and writes the popular Patient Investor newsletter.
Using a top-down approach, Colin identifies macro trends in the global economy and then combines fundamental and technical analysis to evaluate opportunities in sectors that stand to benefit.
Focusing on interest rates and financial market liquidity as primary drivers of the economic cycle, he warned of the 2008/2009 and 2020 bear markets well ahead of actual events.