The recent drop in iron ore prices has seen the major mining companies being beaten down, the selling has now reached panic proportions and of all the big miners Fortescue has faired the worst. While I am not saying this is a good time to buy, as iron ore prices still have fundamental head winds to contend with and the prices can certainly move much lower before smaller miners are forced out the market and the supply glut begins to dissipate. However expect some consolidation or a small bounce within the highlighted zone before any moves lower are made. This zone will be the first major test for bulls if the can keep prices around the $15.00 mark and a floor develops in the next few months in iron ore prices this could develop into a good buying opportunity. Don't be surprised though if price consolidates before moving lower to one of the highlighted support zones.
*Not a recommendation to buy or sell, simply for educational purposes*
*Not a recommendation to buy or sell, simply for educational purposes*