While Europe continues to blubber about inexpensive steel (while acknowledging that it will take 3 to 6 months for softened indiscriminate prices to feed by into change sheets), steel rebar prices in Shanghai final week managed one of their best weekly closes this year, finale usually over a psychological turn of 2,500 yuan per tonne and above a 50 per cent retracement resistance. The lagging line also pennyless good above a tip of a cloud 26 weeks ago and a trend channel. The usually thing still blank in this clever bullish design is for relocating averages to cranky to bullish, that looks imminent, generally when we convene to Fibonacci insurgency during 2,684 yuan. We continue to aim a fist to April’s high of 2,800 to 2,900 yuan.
Nicole Elliott is a technical analyst