Golden Cross as China ramps up
News
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Posted 27/03/2014
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Technical analysts get excited when we have a “Golden Cross” where the 50 day moving average crosses the 200 day moving average as happened yesterday and depicted below. This is often seen as a breakout event which can trigger strong price rallies. Additionally China reported 109 tonne net imports for February which is an incredible 30% increase on January and nearly 80% increase on last February, and Iraq bought 36 tonne. So what happened to the price last night with this news? It came off and was exacerbated for us by a jump in the AUD. Some will say this was bank shorting to cap any jump and (temporarily) guard their positions but on any level it doesn’t feel sustainable does it…