Technicals | Nov 03 2014
This story features FORTESCUE LIMITED. For more info SHARE ANALYSIS: FMG
By Nick Linton-Ffrost
Rally to 3.90 before pullback
We suspect Fortescue Metals ((FMG)) will trade towards 3.90 over the next two weeks before pulling back to around 3.50.
Our view is based on the assumption that FMG is trading within an “abc” rally which is correcting part of the decline from 5.00 to 3.20. We suspect the last two weeks trading has carved out a “zig-zag” pattern (b wave) which implies a bounce towards 5.90 (where wave c=a).
Trading above 3.50 for more than 2 days should be enough to trigger a buy while 2-3 days trading below 3.35 negates our view.
Trading tactics
Open longs with after two closes above 3.50 using a 3.57 limit placing stops at 3.35 and looking for 3.90.
Another trading idea from
Fifth Wave | fwtc.com.au
FW generates over 150 Trading Alerts on the ASX100 each year. We are a subscription service specialising in short term technical strategies based on 27 years experience.
AFSL 319830 | Disclaimer
Reprinted with permission of the publisher. Content included in this article is not by association the view of FNArena (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.
Find out why FNArena subscribers like the service so much: "Your Feedback (Thank You)" – Warning this story contains unashamedly positive feedback on the service provided.
Click to view our Glossary of Financial Terms
CHARTS
For more info SHARE ANALYSIS: FMG - FORTESCUE LIMITED