KIO (Kumba Iron Ore) 1M Chart Analysis

KIO (Kumba Iron Ore) 1M Chart Analysis

Building on the previous analysis, the KIO monthly chart shows a large falling wedge. If the price finds support at the lower trendline (4), it could rebound toward the upper trendline, with an initial target around 495.

RSI supports a potential bounce, maintaining a trendline that has held since 2017. Confirmation of support at these levels could signal a bullish reversal.

Key risks:

• China's Economy: Stimulus efforts face challenges from weak housing markets and high debt, which could limit iron ore demand.
  
• Geopolitical Tensions: Trade tensions add uncertainty to market stability.
  
• Iron Ore Market Dynamics: Analysts predict that China's iron ore imports could reach a record high of up to 1.27 billion tons in 2025, driven by abundant supplies from top producers. However, steel demand is expected to decline by 1.5% in 2025, following a 4.4% decrease in 2024, due to a prolonged property crisis. This scenario suggests potential downward pressure on iron ore prices, with forecasts ranging from $75 to $120 per ton in 2025.