Hi Bones,OK, I made an Index of the top six correlated Iron Ore...

Hi Bones,

OK, I made an Index of the top six correlated Iron Ore Stocks (AGO,ARI,BCI,FMG,GRR,MGX).

Then ran that data into the wave chart.

I used Daily data, so the chart begins in July 2012, although there is no specific Timeframe, it is vaguely a three day chart (if you want to see an intraday one, let me know).

The large rise in price can easily be seen, and note the highest wave 105 million recently (circled), did not make any progress.
Which is the mirror image of the chart I posted earlier.
A large Effort (volume) with no Reward (price movement), and the poor close of that bar can also be seen.
Lots of selling in that wave, for whatever reason.
Since then it came back on 48 million & tested the breakout above the previous high and rejected going lower (so far).

The next two wave's are still incomplete, as the 2 million down has not completed yet & may be added to the 42 million up wave (if it goes up), or the 2 million wave needs to close at least 45 points lower for the 42 million wave to be complete (if it goes lower).

At the current time the line across the previous high is most important, what happens here will most likely define the short term direction.

cheers

PS- it is interesting that this morning AGO has dipped lower again down to 92cps, before popping up a bit, but has only drawn out 4.3 million in volume so far.
Supply at this level has perhaps dried up.