Here are the iron ore charts for December 12, 2014: Poor price action. Paper is stable but Qingdao is 50 cents from a new low and rebar average cant find a bottom. Worse, the news today is all about poor macro data. As expected, China's November data dump was weak. Fixed asset-investment growth continues to bleed: As doesreal estate investment growth, the destination for near enough to half of Chinese steel output: One bright spot was a rebound in credit growth, which has taken the year on year growth rate to only minus -7% now: Not enough to turn around iron ore by...(www.macrobusiness.com.au/ironoreprice)
13c must hold for that fibonacci number support, i say it is holding since 12 dec to now, flat trading even today looks like 13-14c is the floor similar to trading thursday-friday. 3 days dont make a trend ...yet. The curve is flattening, it dropped from 20c only 4 weeks ago, thats a big drop.
SO how can AGO go bust when they have low debt not due for 3 years and can repay loan interest easily, if their costs exceed their sale prices then thats a trading loss interim but not death, it would have to persist for 2 years to burn all cash reserves and sales income by then their cost cutting programme which has been excellent and cheaper transport costs would have kicked in.. i cant see it going under, takeover would be for the brave at this current iop.
LETS SEE IF 13-14c STAYS IN THE NEXT few days
AGO Price at posting:
13.0¢ Sentiment: Buy Disclosure: Held
