Steel SHFE Chart Analysis

There are many negative bearish reports on Chinese steel markets publicized by the Chinese media and western media, however there is a conflicting message shown as compared to technical analysis, known as TA shows Chinese steel markets are undergoing a short term correction. Currently global financial markets are on a bullish mode and it does show conflicting message with a bearish views on Chinese steel markets because of oversupply, overcapacity glut inventory level, couple with the Chinese Authority are implementing environmental friendly policy measure to ease the air pollution of coal driven, hence temporary suspend construction activity in the 1st tier city.

http://www.mining.com/iron-ore-price-drops-chinese-steel-begins-pile/

http://www.mining.com/iron-ore-price-drops-70/

http://www.mining.com/iron-ore-price-craters-2/

After recent Federal Reserve US Central Bank announcement that they are going to rate hike 1 more time this year and projected 3 times more next year signal a shift to drain liquidity from and financial markets on the backdrop of weaker US dollar spot performance.where commodities currencies and commodities are inversely related to US dollar fundamental indicator. Should US dollar rise commodities and commodities currencies fall, should US dollar fall commodities or commodities currencies rise.

TA suggests that the upside is yet over, which is a short term correction from Aug 2017 high.

In June 2017 Iron Ore rally for a short span of 2 months into Aug 2017, from June 2017 low of 52 price to hitting Aug 2017 high of 78 to 80 price level.

1) Blue color lines refer to downtrend line or price channel line resistance.
2) Purple color lines refer to claasical support neckline couple level of support.
3) Green color line refers to U shape curve rounding bottom chart pattern.

Iron Ore Chart from Mining.com - 16 Sept 2017

 Iron Ore Chart from Mining.com - 20 Sept 2017

Iron Ore Chart from Mining.com - 21 Sept 2017

SGX SIMEX IRON ORE FUTURES w TA - 20 September 2017

Shanghai Future Exchange Steel Rebar Future Monthly Chart - 15 September 2017

Latest Steel Rebar Chart from www.mysteel.net

Shanghai Future Exchange Steel Hot Roil Coil Future Monthly Chart w TA - 15 Sept 2017

Disclaimer: All news, information and charts shared is purely by my research and personal views only. This is not a trading recommendation or advice but on the basis of sharing information and educating the investment community. Different traders and investors adopt different trading strategies and risk management approach hence if in doubt please approach or seek clarifications with your Financial Adviser, Broker and Banker.