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 steel has once again reached the ground where it has been at since the beginning of the year at approx. 3,600 yuan (approx. USD 510.00).
The chart formation looks like a wedge formation, which is often reflected in a renewed breakout to the upside. If you extend the two lines to the right, this wedge formation can continue well into the next year.