I undertook to keep readers up to date with developments in the iron ore chart. Today has been another strong one that's seen price push above the March lows on the Dalian iron ore market.
It's a pity we don't have the advantage of a CMC client sentiment tool here. My guess though, is that there's a bit of a short squeeze on at the moment. Not unusual when it's been a one way street for a long time with plenty of doom and gloom. From a technical point of view this doesn't really change things much. Either way there's no longer enough selling to keep price under resistance levels.
Today's overlap through the March lows combined with the push above the 40 day moving average is another sign that this rally may have further to go even if it there is some back and fill along the way
To read my thoughts on the original trend break Click Here
Iron Ore Chart