Fortescue Shares Finding Technical Support

This story features FORTESCUE LIMITED.
For more info SHARE ANALYSIS: FMG
The company is included in ASX20, ASX50, ASX100, ASX200, ASX300 and ALL-ORDS

Fairmont Equities' Michael Gable sees Fortescue shares finding support at the previous support level.

By Michael Gable 

Poor price action from the past couple of weeks is starting to see some warning signs emerge for the major indices.

The S&P500 and the Nasdaq have both fallen below their 50-day moving averages overnight and this could lead to some further short-term weakness.

The S&P/ASX200 Index, however, has led the way in the past week, falling further off its recent peak than the US market.

Today, we offer a technical view on Fortescue ((FMG)).

We looked at Fortescue in July and October and noted it would hit resistance near $20 and then the break above that was the next buy signal.

After breaking higher in late October, FMG came back to retest the $20 breakout area.

It is now finding support at that old resistance line.

This is a positive and this retest of the breakout gives investors another buying opportunity.

Initial stops can be considered back near $18.50. The next major resistance level is up near $26.

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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