Details - Price turning downside off the reversal zone means blue wave ‘b’ could have started. However, we can’t write-off the chances of wave (v) of blue ‘a’ returning upside and higher into the zone. We will wait for the end of blue wave ‘b’ before going LONG.

The SGX TSI Iron Ore Index Futures is a financial derivative traded on the Singapore Exchange (SGX). It is used to hedge or speculate on the price movements of iron ore, a key raw material in steel production.

FEF! has been on recovery since late March 2024 and has now gained over 24% since that time. The bounce is completing an impulse indicating the high likelihood of an extension to the upside in the medium-term. However, the long-term trend appears bearish. Thus, after the corrective recovery has been concluded, sellers can regain control.

On the daily chart, the medium-term term trend is somewhat sideways. However, the trend from May 2021 is bearish. The bearish trend started at 233.95 in May 2021 and completed a double zigzag corrective structure in October 2022 at 73.6. Price followed that with another zigzag structure which ended at 143.5 in January 2024. With this picture, we can anticipate a primary degree double zigzag from the top of 233.95. Primary degree wave ‘X’ (circled) ended at 143.5 and the corresponding primary degree wave ‘Y’ has now begun. We could either get an A-B-C structure or W-X-Y for primary degree blue wave B. At the moment, the price is correcting the first decline from 143.5. This means that once the correction is concluded, the bears should take control again. to prices below 73.6.

On the H4, we investigate the current bullish correction - wave 2. Wave 2 is close to completing an impulse wave which should be it’s first leg - blue wave ‘a’. After blue ‘a’, we should see a corrective pullback for blue wave ‘b’ expected to complete above the low of wave 1 at 95.4. Afterwards, wave 2 should resume higher in blue wave ‘c’. Buyers will have another opportunity to advance the recovery after finding a common support for blue wave ‘b’ leading to blue wave ‘c’. However, we can expect the recovery to be limited before sellers take over for wave 3 after wave 2 find a common resistance area.

Iron ore Elliott Wave technical analysis [Video]

Author

Peter Mathers

TradingLounge

Peter Mathers started actively trading in 1982. He began his career at Hoei and Shoin, a Japanese futures trading company.

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.