Technicals | Aug 04 2011
The TechWizard confessed this week he's secretly a fan of Fortescue ((FMG)) shares. Not because of the company's strong leverage to a buoyant looking iron ore market, but because the share price has remained stuck inside a well-defined trading range for a long time now. For market traders, he explains, this opens up plenty of opportunities, as long as one remains confident the shares will remain inside the band.
The Wizard seems to have little doubt, if any, this will prove to be the case for Fortescue.
This week's headwinds have pushed Fortescue shares back towards the bottom of the $6-$6.98 trading range, observes the Wizard. He adds a sideways trading range is good to trade as one has predetermined support and resistance levels to enter trades from.
The TechWizard is the pseudonym of Scott Morrison, whose experience in financial markets exceeds twenty years. Morrison operates his own website nowadays at www.techwizard.com.au. All views expressed are the TechWizard's, not FNArena's (see our disclaimer).
Technical limitations
If you are reading this story through a third party distribution channel and you cannot see charts included, we apologise, but technical limitations are to blame.
