We suspect Fortescue Metals ((FMG)) will trade towards 3.90 over the next two weeks before pulling back to around 3.50.<\/p>\n
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).<\/p>\n
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.<\/p>\n
Trading tactics<\/strong><\/p>\n Open longs with after two closes above 3.50 using a 3.57 limit placing stops at 3.35 and looking for 3.90. \nAnother trading idea from<\/strong><\/p>\n Fifth Wave |<\/strong> fwtc.com.au<\/strong><\/a> <\/p>\n 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<\/strong>.<\/strong><\/p>\n AFSL 319830 |<\/strong> Disclaimer<\/strong><\/a><\/p>\n Reprinted with permission of the publisher.<\/em> Content included in this article is not by association the view of FNArena (see our disclaimer<\/a>).<\/em><\/p>\n Technical limitations <\/strong><\/em><\/p>\n 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.<\/strong><\/em><\/p>\n
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