Golden Cross as China ramps up

Posted | 27/03/2014 / Views | 2137
Back to News
Next Article

Technical analysts get excited when we have a “Golden Cross” where the 50 day moving average crosses the 200 day moving average as happened yesterday and depicted below.  This is often seen as a breakout event which can trigger strong price rallies.  Additionally China reported 109 tonne net imports for February which is an incredible 30% increase on January and nearly 80% increase on last February, and Iraq bought 36 tonne.  So what happened to the price last night with this news? It came off and was exacerbated for us by a jump in the AUD.  Some will say this was bank shorting to cap any jump and (temporarily) guard their positions but on any level it doesn’t feel sustainable does it…

Golden Cross as China ramps up