[IO Technicals Weekly 2025/06]: Bullish Momentum, But Correction Looms

Commodities

381 Views10 Feb 2025 17:34

Boomeranged on Thu, 13 Feb 2025 19:26

In this paper, we highlighted a short position in iron ore futures at $107.6/ton, which is currently profitable with prices at $106.15/ton as of 13/Feb. However, with Severe Tropical Cyclone Zelia intensifying to category 5, the risk of supply disruptions from Australia increases, posing an upside risk to iron ore prices. With updated market dynamics, it may be prudent to close the short position.

Mint Finance

SUMMARY

SGX Iron Ore Futures rose by $2.25/ton, closing at $107.30/ton on Feb 7, after trading within a $5.50/ton range, the widest in recent weeks.
Strong demand from steel mills, a weaker U.S. dollar (-0.4%), and supply risks from Rio Tinto port clearances drove iron ore prices higher.
Prices trade above key moving averages, with RSI nearing the overbought zone (65.08), suggesting a potential correction in line with historical post-CNY trends.

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