Iron Ore A Sell Following Pessimistic Steel Production and Property Investment Figures
According to a report from National Bureau of Statistics released on Thursday (9/6), China produced 70.5 million tons of crude steel in May, which translates to an average production rate of 2.274 million tons per day. This represents a 1.7% decrease from April’s figure of 2.314 million tons per day. Additionally, the report published on Monday (13/6) reported that property investment, which is a key driver of the iron ore price, slowed to 7% over the first five months of the year, compared with 7.2% growth January to April. These negative statistics have knocked down the Iron ore price aggressively. On the daily chart, the market has stumbled for 4 consecutive days after hitting the resistance at 206.88, formed on June 8, 2016. RSI (14) dipped into 48.6528, suggesting that a downtrend is in the making. Still, ADX (14) is moving downwards to the level of 13.6532, signaling that the bearish trend is relatively weak. The commodity is expected to go down slightly and may then tick up again.
Buy limit at 193.50, Take profit at 198.68, Stop loss at 192.57