more on Fortescue Metals

Here is an ongoing series of posts about Fortescue Metals (FMG.AX) and how it has traded at percentage extremes above it 200 week moving average. This helps tell you when chasing a stock higher becomes perilous in the face of a mean reversion, often when the tide and sentiment turns at its worst.

I don’t hate the stock nor the company. I’m just calling it as I see it.

For more than a year, FMG.AX has defied gravity.

If we see a break below $13.71, sees the stock visit $11.70 – $12.00, failing that it may test the $7.00 level.

Absurd perhaps but not impossible.

October 13, 2021

by Rob Zdravevski

rob@karriasset.com.au

#ironore #fmg

Iron Ore is cheaper than Firewood

A ton of Iron Ore is now 25% cheaper than a ton of Jarrah firewood.

With all my writing about extremes and mean reversion, Iron Ore is reaching an interim point which increases probability of a ‘buying’ moment.

Currently, it is trading at US$145 per ton.

The chart below circles an area between US$124 and $132 which I think (in conjunction with my other indicators) present an opportunity for a ‘trading buy’.

Incidentally, that upward sloping line is Iron Ore’s 100 week moving average.

So, I’m looking for a 14% drop in the coming 15 days to satisfy a buying criteria and this will have an effect of your listed iron ore sensitive equities.

BHP at $40.45 perhaps?

September 2, 2021

by Rob Zdravevski

rob@karriasset.com.au

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