SGX Iron Ore

Near Term (Basis May):  Bearish, turning defensive

The firm close on a higher trading day in the iron ore market for Thursday’s session and then a small extension higher for starters on Friday has the May futures pushing up against the 9-day moving average and threatening the ADX with a turn down on Friday to end the week slightly more cautious on our part and certainly less aggressive as a bear unless the market turns back down on Friday to salvage the ADX reading. We came in looking for Thursday’s session to extend lower coming out of the inside range day and since it tried and then failed in that regard, we have to worry a little about the next phase of this market move…still lower and under pressure, or back higher to correct and put the bears in a small technical bind. 

Long Term:  Neutral, weakening

Our long-term outlook is neutral, but could turn bearish next week. Major resistance is 76.76, while support is 61.50 and then 54.34.2017-04-20 16_30_43-042017_SF_Daily_Commentary_Iron_Ore [Read-Only] - Microsoft Word2017-04-20 16_30_25-042017_SF_Daily_Commentary_Iron_Ore [Read-Only] - Microsoft Word

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