(ASX) FMG Fortescue || March 6, 2024
Master of Elliott Wave Analysis: Shane Hua (CEWA-M)
(Left chart) The broader context (Daily chart) suggests that wave ((iii))-green appears to have peaked at 29.95, followed by a corrective wave movement labeled ABC-purple. Overall, the context allows me to see that the rise of the Bull market is necessary; it's just too early...
Here is an explanation on the Bullish and Bearish Hidden Divergence concepts
Rules are as follows:
Bullish Hidden Divergence
Happens only in uptrend
Observed on pivot lows
Price makes higher low, whereas indicator makes lower low due to price consolidation. In bullish trend, this is considered as bullish as the price gets a breather and get ready to...
Here is a graphical representation of the simple concept of bullish and bearish divergences.
Rules are pretty clear
Bearish Divergence
Happens only in uptrend
Observed on pivot Highs
Price makes higher high whereas oscillator makes lower high, indicating weakness and possible reversal
Bullish Divergence
Happens only in downtrend
Observed on...
ENTRY: 22.67
SL: 21.77
TP: 23.64 - 23.99
- ADX<25. Would like to be higher.
- Daily RS +ve
- Daily FFI -ve
- Weekly RS +ve
- Weekly FFI +ve
- Moving averages are aligned.
- Stoch RSI crosses up 20.
- Entry based on controlled pullback until 3 Feb 2023 to resistance-turn-support area (21.77) and rebounded but would like an increasing volume.
FMG RSI is higher than YTD at a resistance indicating strength
MACD different look as YTD at resistance indicating strength
2 possible scenarios,
Jump to previous high
Retracement to 60 FIB
A flat pattern will might end up the wave 4. The next target is likely to achieve leg c of a zigzag family ABC. Support is as the fib ratio of 78.6% which is the same support where the wave 4 of an impulse had ended.
possibly bull flag (the falling wedge). The price has to break the resistance zone around $20 for the entry. Target the same as the pole in between $26-$30.
*not a trading tips. wave count might be wrong.
Thanks for viewing
Just a simple technical analysis of the share price of FMG assuming continued correction from all time highs. Mostly just based on the Iron ore price having lost 55% from 2021 highs and still being 50% (while FMG is only down only 28%) down presently.
Mapped out some support / demand and resistance / supply zones. Thinking something around...
So I'm most of the way through Jessie Livermore's classic books on audible Reminiscences of a Stock Operator & Jesse Livermore’s Methods of Trading in Stocks . Looking back at this FMG chart could this be considered a Livermore accumulation cylinder? Love to know your thoughts! Comment / Find me on Twitter.
Fmg - looks like the uptrend is about to resume.
Key techinical - Inverse head and shoulders formation. FMG chart suggests it could be headed to $30. Resistance at $26. 20% upside.
Key fundamental - Iron ore prices at record highs to continue, resulting in record EPS ( big dividends ).
At these price levels it is a bit rich for my blood though.
Volume is decreasing heading into resistance.
Broke the downtrend, but on weak volumes
RSI is not at point of conviction for me, looks pretty risky.
