Fortescue On Wizard’s Radar

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

By Rudi Filapek-Vandyck

Since the start of this year, reports the TechWizard, shares in Fortescue Metals ((FMG)) have remained in a trading range between $5.40 and $4.40.

From a trader's point of view, he says, identifying these trading ranges can be the beginning of a very profitable strategy as they provide predefined buy and sell levels. Of course, at some point these ranges are broken, but no strategy is completely without risk, he says.

Fortescue shares are firmly on the Wizard's radar as the shares have landed back at the bottom of their range. This could be the next buying opportunity, suggests the Wizard.

He's waiting for the stochastic to cross and then to turn up again, as this will confirm the trend has reversed for the shares.

The Wizard reports he at present does not own shares in the company.

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