Iron ore prices finally ended the streak of consecutive highs and traded with a slow momentum today. The Chicago Mercantile Exchange listed Iron ore 62% graded Index is trading at US$ 97.25 (as on 21st May 2019 AEST 3:29 PM), up by 0.87% as compared to its previous day’s close of US$ 96.38.
The prices inched up in Chinese market and settled at RMB 711.50 a tonne (as on 20th May 2019), up by 0.64% as compared to its previous close on Dalian Commodity Exchange.
The recent bull rally in iron ore prices amid a decline in supply and sixth consecutive fall in iron ore inventory in China coupled with high steel demand & prices prompted significant Australian significant iron ore miners to cash out the opportunity and take advantage of high prices in the international market.
Six months Comparative Performance Chart (Source: Thomson Reuters; Iron ore, RIO, FMG, BHP)
The iron ore bull run supported the prices of significant miners such as Rio Tinto, Fortescue Metals, and BHP Billiton on the Australian Securities Exchange.
It can be depicted from the above chart that the rally in iron ore prices took the shares of these companies to the top level over the past six months.
Rio Tinto Limited (ASX: RIO)
The share prices of the company once again crossed the A$100 mark. The shares of the company started the up-rally from its recent low of A$93.050 (Day’s low on 6th May 2019) and breached the level of A$100 to mark a high of A$102.740 (Day’s high on 20th May 2019).
Source: Thomson Reuters; RIO Daily Chart
On following the daily chart, the recent recovery in the share prices of the company from the level of A$ 93.050 ended at A$102.740. The prices corrected by approx. 30% of its continuous rally, which started from the level of A$ 69.410 (Day’s low on 6th September 2019).
On the technical side, the prices are currently above the pair of short (7)-medium (20)-long term (200) exponential moving averages (EMAs). The daily chart is demonstrating a golden cross-over of 7 and 20-days EMAs (Bullish signal) marked on the chart with a green circle.
Fortescue Metals Group Limited (ASX: FMG)
The shares of the company undermined the iron ore bull run and rose from the level of A$7.400 (Day’s low on 8th May 2019) and surged on ASX to the level of A$9.340 (Day’s high on 20th May 2015).
Source: Thomson Reuters; FMG Daily Chart
The shares of the company inched up from the level of A$7.400 as marked by a green arrow. The prices are technically indicating a golden cross-over which is encircled in green contour. The initial rally, which started from the level of approx. A$3.724 corrected more than 38.2% before resuming the original uptrend.
BHP Billiton (ASX: BHP)
The prices started the upticks from the level of A$ 36.150 (Day’s low on 14th May 2019), and the shares of the company rose till the level of A$38.460 (Day’s high on 17th May 2019).
Source: Thomson Reuters; BHP Daily Chart
On following the daily chart, the share prices of the company are currently trading above the trio of 7-20-200 days EMAs, which are at A$37.720, A$37.653, and A$34.588 respectively. The averages just gave a golden cross-over over the recent iron bull run.
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