How Are Iron Ore Producers Moving On Charts?

How Are Iron Ore Producers Moving On Charts?

Iron ore prices marked a slight fall, with Iron Ore fines 62% Fe (CME) fell slightly on 13th March 2019 to mark the closing of $85.01 amid the absence of any steep fall in China domestic steel inventory.

In the recent development in the China market, Tangshan’s weather department uplifted the smog alert on the two key areas of the city. The City came under the highest level of pollution on 1st March, when the city alert shifted to red from the orange sign.

The removal of the smog alert in the city allowed local sintering machines that meet the emission standards to operate in the provinces and restart the production. Previously few mills replenished the used iron ore in raw material, and the reluctance of some mills to buy the iron ore as per the current scenario slightly brought the iron ore prices down.

How Metal Miners are reacting on Charts:

Fortescue Metals Group Limited (ASX: FMG) is on a surge and moving in an uptrend from the level of A$4.580 (day’s low on 23rd January 19). The share recently corrected from A$6.712 (Day’s high on 20th February) to the level of A$5.940 (day’s low on 1st March). The share moved to mark a high of A$6.680 (as on 7th March) and closed on a positive note today (14 March) on ASX at A$6.560 as compared to its previous close of A$6.530.

Source: Thomson Reuters: FMG Daily ChartSource: Thomson Reuters: FMG Daily ChartSource: Thomson Reuters: FMG Daily Chart

Following the development on daily charts, the share is moving in an uptrend. The 7-days exponential moving average is valued at A$6.491 and is trading above the medium term 20-days exponential moving average, which is valued at A$6.301. The Golden cross over emerged on the chart, when the green line (7-EMA) in the chart crossed the blue line (20-EMA) from below, which marked a sign of an uptrend. Both the shorter- and medium-term moving averages are placed above longer-term 200-days EMA, which is valued at A$4.785. The Relative Strength Index (RSI) for 14 periods is valued at 63.328 and is well above its mean value of 50. The negative candle which was marked on 14th March 2019, did so with the diminishing volume.

BHP Group (ASX: BHP) is moving in an uptrend from the level of A$32.240 (day’s low on 23rd January 2019) and recently marked a high of A$38.200 (day’s high on 21st February), before correcting again to the level of A$36.450 (day’s low on 11th March).

Source: Thomson Reuters: BHP Daily ChartSource: Thomson Reuters: BHP Daily Chart

Following the development on daily charts, the share is moving in an uptrend. The 7-days exponential moving average is valued at A$37.047 and is trading above the medium term 20-days exponential moving average, which is valued at A$36.886. The Golden cross over emerged on the chart, when the green line (7-EMA) in the chart crossed the blue line (20-EMA) from below, which marked a sign of an uptrend. Both the shorter- and medium-term moving average is placed above longer-term 200-days EMA, which is valued at A$32.636. The Relative Strength Index (RSI) for 14 periods is valued at 56.871 and is well above its mean value of 50.

With iron ore prices are hovering in a thin range, they are expected to rise over a short term. The commodity associated companies are performing well on charts.


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