FMG - Fortescue Ltd

[joeyjoejoe]

i am considering a small play at 2.00 if they support is there and the sell side dries up @ 2.00

and exit at 2.50 (however long that takes)

i saw big sell orders for amounts such as 2.02 2.04 2.05 etc etc which scared me off it this afternoon... where it went from 2.00 closed at 1.95


i also noted that sell side has double the amounts of units to be sold than buyers buying. 5million vs 2.5 million.

id like to see more buyers than sellers and the sell side dry up. and id be looking to enter.

 

[Miner]

Good announcement from FMG today

: Formation of a JV with shipping company.

Andrew is always good to buy at low and then make money for him and others from there. Remember what price he paid for FMG and got freebies for POS presumably to help its share up

FMG made alliance with AGO to ship its ore.

There was strong possibility to acquire HBI plant when the market was high.

All becoming part of vertical integration under shrewed corporate strategies

So the next move will be to have a JV with some scrap companies like SIM metals so that once FMG becomes like HBI plant the shareholders will not be disadvantaged from the profit earned from selling scraps

 

[SenTineL]

there hasn't been any comment on the interim accounts released by FMG in the last couple of days.

the market seems to have approved of their position and this latest JV especially during the last few days of red.

 

[SenTineL]

I guess this forum doesn't like good news from FMG anymore?

Up 9.45% today.

BHP also up after a huge profit downgrade?!?

 

[Frankhalo]

I guess this forum doesn't like good news from FMG anymore?

Up 9.45% today.

BHP also up after a huge profit downgrade?!?

Its all good SenTineL, come mid year when the full yearly figures are released we'll both be smiling , hell I'm smiling now with the 6 month figures, given the twist the worlds got itself into FMG are doing very, very well. Sorting the shipping mess out too was a huge plus aswell.

 

[M34N]

I think the main test now is to see if it passes the high it set Jan 7 around $2.35 (someone might have the exact figure) so any breakdown from there would most likely see a big pullback towards the $2.00 mark, and depending on the market conditions, lower. Any break above that price and I would suspect we would see clear sailing up to the highs set on December last year at around $2.70. So a nice trading range there with plenty of $$$ to be made.

This is probably one of the best stocks on the ASX to trade lately, good volume and plenty of swings. Perfect stock for day trading IMO.

 

[vincent191]

I read from the papers that conserving cash is their main priority. I see three positives here;

1.) They have settled their shipping dispute with equity and not cash.
2.) They have cut back on capital expenditure and put the railway extension on hold, thus conserving more cash.
3.) They are expecting shipment to increase and an improved revenue stream.
4.) Twiggy is off the opinion that the price of iron ore has bottomed out.

I hope we will see the share push above the December high and test the $2.50 mark and hopefully the Dow wont come and spoil the party.

 

[M34N]

Looks to be flirting with the $2.35 level I posted before, kind of stuck there and unsure if it will go either way? I thought it would stall here, I think we'll need a big move up in the Dow to push it higher from here, otherwise maybe a retracement to the $2.20 range at the least. Lets see how it closes in the next 40 mins.

 

[vincent191]

I will hold for a bit longer hoping it will reach a new year high. My personal target is $2.70. Then I will take some profit and sell half to get some of my money back to keep trading. The other half I will leave it until the second half of 2009 and wait for the bull to arrive.

 

[gresim25]

Hey guys...just wanted to see what are your thoughts on FMG...I have entered yesterday at around 2.200 and I didn't decide to close off the trade today...it looks like it formed the double bottom and closed above Jan 7 high...the wolume wasn't too shabby either?

Greg

 

[Mr Capital]

Hopefully FMG have seen the bottom @ 1.16 which i rode down.
Is the upside just temporary, or is the Spot Price actually on the rise.
Seems like its flowing with BHP's Marius Kloppers' comments on iron ore.
Maquarie Group have downgraded this stock to an underperform with a price target of 1.00 Which seems to be going against the short term trend.
Any insight ?

 

[MichaelD]

Ah, my "favourite" stock - FMG.

It's appeared on my radar several times in the last week or two (and I have indeed short term traded it profitably when my system indicated to do so this week).

For some reason, my gut keeps screaming "sucker's rally" with the market action here - I cannot shake the nagging feeling that this rally is merely a manipulated one so a big player can dump their stockholding at a better price next week, but I guess time will tell. Certainly the believers look like they've piled in again.

(Currently, I hold no position in FMG).

 

[joeyjoejoe]

i was going to get back in @ 1.875 but I was too indecisive unfortunately.. i predicted sideways for longer that what were getting but good luck to all holders.

i tend to agree with the comments that if it breaks 2.50 it will continue trending up.

- this just my opinion an obviously not a technical analysis.

 

[M34N]

Looks to be flirting with the $2.35 level I posted before, kind of stuck there and unsure if it will go either way? I thought it would stall here, I think we'll need a big move up in the Dow to push it higher from here, otherwise maybe a retracement to the $2.20 range at the least. Lets see how it closes in the next 40 mins.

OK, it closed at the $2.32 level so it held around that high reached early Jan 09, and with that big push up higher on the Dow I potentially think we could see a strong spike up on Monday again. EMA also showing bullish signals and indicating a move higher. I can't put a value on it myself, but I'm expecting the $3.00 level to be reached and become resistance, which would fit this nice channel that has formed over the past few months (refer to chart).

I guess it's up to the Dow and how how this bear market rally goes, but going by the signals I'm seeing, a test of $3.00 is very possible, given the noticeable increase in buying volume on positive days, it is likely a lot of the sellers have gone and a lot of potential room to the upside.

So in response to this, I have moved my stop up to $2.20 and will progressively move it higher, unless something bad happens in the near future I see no sell signals yet.

 

[Miner]

After holding FMG for long time with little hope to sell the costly investment I am now eyeing for SIMS Metal. THis company is not doing too good and hopefully FMG will have some alliance with it to recover . Both of them feed to the same customer - steel makers so there could be an excellent synergy when steel price recovers

 

[vincent191]

Some people seems to think it will go higher than $2.57. Buyers still outnumber sellers by nearly 2:1.

I will hold my breath until tomorrow. Mr Dow Jones please don't gatecrash my party.

 

[Trembling Hand]

Some people seems to think it will go higher than $2.57. Buyers still outnumber sellers by nearly 2:1.

I will hold my breath until tomorrow. Mr Dow Jones please don't gatecrash my party.

LOL

They aren't buyers till there is a transaction and then there is an equal amount of sellers.

What is sitting in the order book is rubbish. What is important is which side is hitting the market. That's what moves stocks. Not Spoofs.

 

[M34N]

Some people seems to think it will go higher than $2.57. Buyers still outnumber sellers by nearly 2:1.

I will hold my breath until tomorrow. Mr Dow Jones please don't gatecrash my party.

Lets look at the figures:

1. FMG had amongst the highest volume on the ASX today, this is a bullish sign.
2. Had an open price of $2.45 (which is up $0.12 from the close on Friday), low of $2.43, high of $2.59 and a close at $2.57. This indicates demand pushed the price higher through the day and is bullish.
3. It is up 10.7% on the day, and up around 45% from Jan 30th (about 6 trading days). Bullish.
4. Broke through key resistance levels at $2.00, then $2.20 and then $2.50. Again, bullish.

Its close today was also up from $2.55 and closed at $2.57, so 'buyers' as you put it pushed the price higher at the close so people are buying in and pushing the price higher as the sellers can command a higher selling price. So the demand is there to push the price up. I think this is what you may be referring to?

 

[enigmatic]

LOL

They aren't buyers till there is a transaction and then there is an equal amount of sellers.

I don't think this statement really holds true.
If there are a fix number of sellers say 10 then for those number of sells there can be relatively infinite number of buyers.

For Example
10 Sellers total 1,000,000 Shares
1 Buyer total 1,000,000 Shares
10 Buyers each 100,000 Shares
100 Buyers each 10,000 Shares
1000 Buyers each 1,000 Shares

but you are correct they are both only potential buyers and potential sellers.

 

[vincent191]

Looks like someone has spoiled my party. The price is dropping. Just a case of profit taking I hope?? Anyway, it has had a good run the past few days.