Kumba Iron Ore's monthly view shows a reversal pattern in play for a long position. The following have to play out:
1. Overcome horizontal resistance at R415 (this is expected in October)
2. When October closes above R406.01, open a long position (swing low is confirmed)
3. First target R480 area, idea to be updated based on daily timeframe analysis whether to take profit
4. If price goes above R480 area next target becomes 10 month moving average, after that the green trendline
5. A monthly close above the green trendline means holding until price closes below 10 month moving average & trendline support
A rejection on green trendline means price resumes downtrend until June/July 2023.
1. Overcome horizontal resistance at R415 (this is expected in October)
2. When October closes above R406.01, open a long position (swing low is confirmed)
3. First target R480 area, idea to be updated based on daily timeframe analysis whether to take profit
4. If price goes above R480 area next target becomes 10 month moving average, after that the green trendline
5. A monthly close above the green trendline means holding until price closes below 10 month moving average & trendline support
A rejection on green trendline means price resumes downtrend until June/July 2023.
Comment:
KIO appears to be moving towards a breakout of the green trendline, close to confirming a weekly low, we expect price to trend upwards.
Comment:
KIO was rejected at the green trendline and should now move to test green support, this means we get another shot at establishing a yearly low, technically we already had a yearly low so we can consider this one a short one like the one leading to March 2020 low.
