Industry growth research firm IHS Markit predicts $12.3 trillion in revenues from this newest growth industry
This industry is about to go into orbit…
Research firm Markit estimates this $1.3 billion industry will explode in revenue into $12.3 trillion.
To put that into perspective... That’s 24 times more money than Walmart makes in a year.
And 45 times more than Apple. In fact, it’s 11 times more revenue than Amazon has made in its enture existence.
It’s no wonder Forbes called it the “Holy Grail”. And MIT Technology Review claimed it will bring about a “technological paradigm shift similar to the jump from the typewriter to the computer.”
If you would like to find out what this this opportunity is, go here!
Iron Ore and what you need to know
Did you know that Iron Ore (Fe) is mined around 50 countries world wide.
It is used to make steel (buildings, cars, equipment etc…).
And the main thing that drives up the price for iron ore boils down to global economic growth through demand & supply.
And right now demand is outperforming its supply!
How China is helping with the iron ore rally
Last week, we saw iron ore prices hit six and a half year highs.
This was due to the Chinese showing levels of massive manufacturing, factory and construction activity that was last seen almost a decade ago.
You see, they have manageed to inject hundreds of billions of dollars of fiscal stimulus into infrastructure.
In the last three months China’s imports have gone up 20% year on year. This is up 11% compared to 2019.
In fact, in August alone their imports were the third highest on record.
And as the demand for steel picks up, we will continue to see iron ore prices hitting new highs.
Brazil welcomes blockchain technology which will boost the iron ore price
In the second quarter of 2020, Brazilian mining companies reached a 9% increase in production value compared to Q1.
And Brazil’s iron ore exports – which represents 59% - of the country’s mineral production totaled $5 billion (6% higher in Q2 than in Q1).
And that’s just the start…
Because Brazilian iron-ore company – Vale – is now incorporating blockchain technology.
I don’t want to go into too much detail.
Basically, the letter of credit was issued through Contour blockchain platform. And the shipping documents and electronic bill were handled through essDOCs CargoDocs Solution.
All you need to know is that Vale has made their first blockchain sale. And the transaction was supported from the DBS Bank and Standard Chartered Bank Malaysia Berhad.
The company said
“It is an important milestone towards the digitalisation of the sales and trade process, bringing innovation to the traditional paper-intensive trade transactions and offering a better service to the clients, as well as predictability in the steel value chain.”
So going forward, it looks like there’ll be a bright and profitable future for this dim metal.
And this pattern confirms the upside to come…
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Why this Cup of T formation shows a 68% rally for iron ore
In this chart analysis, we’re looking at iron ore’s daily price chart.
We can clearly see that since 2014, it’s been moving in a consolidation (sideways pattern) between $127.50 and $40.
During this time, it has been forming a six and a half year breakout pattern – Cup and Handle or what I call a Cup of T.
This is a pattern that has three characteristics:
1. A big rounding bottom (cup)
2. A small rounding bottom (handle)
3. A brim level (Ceiling level) Which in this case is at $127.50
But as of last week, the price has broken up and above the formation. This tells us that the buyers are dominating the market and we can expect further upside to come.
To calculate the price target, we’ll simply use the High-Low calculation.
We will take the difference between the high and the low prices of the formation and add it to the high price.
Here’s the price target for iron ore…
Price target = (High – low) + High
= ($127.50 - $40) + $127.50
Here’s how we’ll profit from the 68% iron ore rally
I’ll be scouring the steel markets on the JSE and will be sending buy trade ideas via Red Hot Storm Trader.
And second, Joshua Benton – analyst for Real Wealth – told me he’ll also be writing about the iron ore rally and how to take advantage from the price rise.
Analyst, Red Hot Storm Trader