Higher Highs Looming For Fortescue Metals

Technicals | Jan 21 2020

Michael Gable of Fairmont Equities suggests higher highs are coming for the Fortescue Metals' share price.

By Michael Gable

It was interesting to read overnight that the International Monetary Fund (IMF) has seen tentative signs of a bottoming out in global manufacturing and trade.

This is what we wrote about in our August 2019 update and then again last month in our 2020 Market Outlook. This is why we have been bullish on the share market for months now and suggesting that investors buy the dips, not sell the rallies.

It is why growth stocks and resource stocks such as CSL, BHP Group, Rio Tinto, and Woodside Petroleum have been trending higher and outperforming the share market during the last few months. It is another example of why waiting for institutions like the IMF to tell you everything is OK, and waiting for all your ducks to line up usually results in investors getting in too late and underperforming.

Luckily, we still believe that we are only seeing the start of a move, not the end of it. Although markets in the short-term look hot and can be forgiven for cooling off a little, we don't see a big move lower from here. The uptrend in the Australian market has much further to run over the coming months.

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