We evaluate the price development for the steel and raw material markets based on selected charts on a monthly basis. This is similar to the procedures used by chart analysers for the evaluation of the stock exchange markets. Advantages of such chart analyses are: The chart value / development of the chart contains all positive and negative information. Furthermore it shows the expectations of the participants in this market for the future.
The price of iron ore has broken through the downward sloping trend channel and is approaching the upper resistance line at $94.50. As stated in the previous letter, falling price corrections often end with a price breakout to the upside.
Increased inquiries to us for chart technical evaluation of the Euro against the USD cause us to
issue a special edition. For a professional assessment of the longer-term and short-term charts, we
have consulted a trader friend of ours at the Frankfurt Stock Exchange.