Positive Signs For Fortescue Metals

Technicals | Aug 02 2022

This story features FORTESCUE METALS GROUP LIMITED. For more info SHARE ANALYSIS: FMG

By Michael Gable 

The recovery in share markets which we have been warning about these past few weeks continues in earnest.

After a solid few days at the end of last week, it is to be expected that we get a little consolidation here for a day or so. That would actually be a good thing because it makes the rally more sustainable. We therefore continue to remain positive for now on the direction of the overall market.

The other factor to keep an eye on is the US dollar index. It is starting to ease off after running strongly all year. If this continues, then that could be a positive for gold and other commodities [in USD price terms].

Our chart this week is on Fortescue Metals Group ((FMG)).

In early July, FMG broke under the March low, but it then managed to get back above it – which is a positive sign.

In the last few days, it has found some resistance near the peak from late June, but it is consolidating nicely here just above $18.

It looks like it should continue higher from here, with a push above $19 being the confirmation that it should then make a run towards the old high near $22.

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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FMG

For more info SHARE ANALYSIS: FMG - FORTESCUE METALS GROUP LIMITED