Technicals | Jul 14 2020
By Michael Gable
In this meandering market, a couple of rotations or shifts in sentiment may be underway in the short term. A bit of heat should now come out of some technology stocks in general and that means that opportunities in that space will be available at some point soon, just not yet. Resource stocks also seem well supported right now, not only in the large cap space, but also the mid-caps. We are also seeing some relative support in the financials space at this point in time.
In this week's charting section, we have Fortescue Metals Group ((FMG))
Our last comment on FMG was on 28 April when it was trading at $11.46. We noted at the time that price action was positive and FMG should go on to a new high. It has traded very well since then, and the trend continues to look sustainable. Most recently it has tested resistance at $15.00 and then pushed beyond it. FMG should continue to trade higher from here. If it does ease back in the short term, it will need to stay above the June low which is near $13.60.
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Michael is RG146 Accredited and holds the following formal qualifications:
• Bachelor of Engineering, Hons. (University of Sydney)
• Bachelor of Commerce (University of Sydney)
• Diploma of Mortgage Lending (Finsia)
• Diploma of Financial Services [Financial Planning] (Finsia)
• Completion of ASX Accredited Derivatives Adviser Levels 1 & 2
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