Someone on Twitter asked me about the Aussie stock, Fortescue Metals (Ticker: FMG), so I thought I'd respond with charts in a post as they are easier to view.
FMG weekly: January chart: this stock has been one on my watch list for some time as I saw it shaping up with a bullish reversal descending wedge. The breakout triggered in January and I had a target up near $6 as this was previous S/R and near the 61.8% fib of the previous swing Low move:
FMG weekly: price action has exceeded the target of $6 and looks to be stalling near the $7 whole-number S/R level and the 78.6% fib. Note how the current weekly candle is green, but, any further weakness today could see this close with a bullish-reversal Shooting Star candle so that is something to watch out for.
FMG weekly: Any weakness from here would have me looking for a retreat back down to the $5 region as this is previous S/R and near the 61.8% fib of this latest swing High move:
FMG weekly: Just out of interest, the default Elliott Wave indicator on my software suggests that this, overall, bullish move might experience a retreat before eventual continuation. This indicator doesn't see the pullback as deep as $5 though so, if there is a pullback, we shall see who gets it right 🙂
Summary: Fortescue metals has enjoyed a bullish-reversal descending wedge breakout but price action is stalling under the $7 level. Watch to see how the weekly candle closes as any further weakness on Friday could trigger a bullish-reversal Shooting star candle. In the even of developing weakness, watch for price action to test the $5 level as this is previous S/R and near the 61.8% fib of the recent swing High move.
Disclosure: I own FMG stock.