article 3 months old

More Upside For Fortescue

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.

Content included in this article is not by association the view of FNArena (see our disclaimer).
 
Michael Gable is managing Director of  Fairmont Equities (www.fairmontequities.com)

Fairmont Equities is a share advisory firm assisting Private Clients with the professional management of their share portfolio. We are based in the Sydney CBD but provide services to private clients across Australia. We believe that the concepts of fundamental analysis and technical analysis of stocks are not mutually exclusive. Regardless of whether you are a trader or long term investor, combining both methods is crucial to success. As a result, the unique analysis of Fairmont Equities is featured regularly in the media such as Sky News Business, CNBC, The Australian Financial Review, and the ASX newsletter. Contact us for a free trial of our research and information on our portfolio management services. 

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

Disclaimer

Fairmont Equities Australia (ACN 615 592 802) is a holder of an Australian Financial Services License (No. 494022). The information contained in this report is general information only and is copy write to Fairmont Equities. Fairmont Equities reserves all intellectual property rights. This report should not be interpreted as one that provides personal financial or investment advice. Any examples presented are for illustration purposes only. Past performance is not a reliable indicator of future performance. No person, persons or organisation should invest monies or take action on the reliance of the material contained in this report, but instead should satisfy themselves independently (whether by expert advice or others) of the appropriateness of any such action. Fairmont Equities, it directors and/or officers accept no responsibility for the accuracy, completeness or timeliness of the information contained in the report.
 

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CHARTS

FMG