Fortescue Fortescue is showing signs of weakness after failing to break out from last month's IHS/cup formation.
There's potential for a drop to $15.
Fortescue
SHORT FMGThanks for viewing
Just a simple technical analysis of the share price of FMG assuming continued correction from all time highs. Mostly just based on the Iron ore price having lost 55% from 2021 highs and still being 50% (while FMG is only down only 28%) down presently.
Mapped out some support / demand and resistance / supply zones. Thinking something around sub-$12 would be a good short-term target (although I expect a bounce at the $14 level). Also based on 1:1 extension of the deep correction and retrace and a 1.618 extension of what may be wave 1 & 2 of the last 5 waves down to complete the correction. They line up relatively closely, so it seems like a good spot.
Price may push above the 200EMA before continuing correction, although near-term upside potentially $19.50. We will see.
Fundamental... more and more speculation about the debt crisis unfolding in China in the property and banking sectors. We can never get the full picture. However, that combination of issues could seriously dent imports - especially construction steel.
Increasing possibility that anecdotal evidence of a steep drop-off in residential construction in China is accurate. But, we don't have to speculate that far given the weakness in global iron ore prices. While FMG's cost of production is around $15 per ton it will clearly still be profitable, there will be less profit and earnings forecasts due later this month are lower than the previous Q1 and any further weakness in global iron ore prices will probably prompt at least some investors to sell up and continue the downside correction.
Protect those funds.
Fortescue Metals: as long as 18.17 is support look for 21.54Alternative scenario: the downside breakout of 18.17 would call for 17.2 and 16.29.
My pivot point stands at 18.17.
My preference: as long as 18.17 is support look for 21.54.
Comment:
The RSI is above its neutrality area at 50.
The MACD is positive and below its signal line.
The stock could retrace in the short term.
Moreover, the stock is trading above both its 20 and 50 day moving average (respectively at 18.88 and 16.89).
Trade Safe -
Jimster45
Fortescue Metals - oversold yet?Price at time of analysis is 45.5% discounted from high.
Price action seems to have created a base over the last month with RSI divergence.
depending on your time horizon current prices seem cheap especially when considering the company's fundamentals.
Go Long on mining stocks $FMG Fortescue MetalsBroke out today, I do expect $FMG to go higher in the short to mid-term just like BHP.
Go Long on Mining Stocks $FMGTime to go long on Mining stocks. $RIO $BHP and $FMG all have bullish chart patterns in play for next month and early 2021.
FMG Turning Around. It was a phenomenal impulse. But now, it is time to come back to reality on Fortescue. NFA
Short it to the fib levels! FMG shares AustraliaHi guys its bokchoininja here with another fibonacci analysis. In this analysis I highlight three critical zones of support and resistance predicted by good old fibonacci ratios. We had a nice kiss on the 1.618 level and are struggling to break past the current resistance zone. If we do break past we are headed upwards but the resistance box is where i have my buy orders. Check out my youtube for more info AweeboneshTV :D.
Loosing momentumUpside seems limited but 8.60 is current support.
Risk of iron ore prices and Vale coming on line remain.
But Ziggy has offered big dividend surprises recently and with low interest rates, dividends are king.
Continuing to take shorts. Looking for 7.60.
BULLISH ON FORTESCUE : TARGET $5.46FMG has formed a Head and Shoulder bottom.
Price has broken a recent 6 day channel high.
ADX signalling a bullish trend is forming.
RSI at 65 and in an uptrend.
Stochastics signalling momentum.
