Fortescue Metals Group Limited (ASX:FMG) HEFFX Highlights

Fortescue Metals Group Limited (ASX:FMG) HEFFX Highlights

Fortescue Metals Group Limited (ASX:FMG) HEFFX Highlights

  • Mr Power said Fortescue is “reviewing proposals right now” for solar, and for the extension of the gas and power distribution grids near its operations as it sought to improve efficiency and environmental performance of energy supply for its mines.
  • “They are the three key areas that we are looking at and we think maybe a combination of all three is going to be the right solution,” he said in an interview in Sydney where he raised serious concerns about energy policy and pricing.
  • Fortescue has already switched some of its operations from diesel to gas, having a new 270-kilometre pipeline spur built from the existing Dampier-Bunbury pipeline to its Solomon power plant in 2014.

Fortescue Metals Group Limited is engaged in the exploration, development, production, processing and sale of iron ore. It owns and operates an integrated supply chain, including its approximately five berth Herb Elliott Port in Port Hedland and the heavy haul railway with approximately 42 ton axle load capacity over 620 kilometers of track. Its operations span over four mine sites in the Pilbara. The Chichester Hub, which includes the Cloudbreak and Christmas Creek mines, is located in the Chichester Ranges, and produces over 90 million tons per annum (mtpa) from three ore processing facilities. The Solomon Hub is located in the Hamersley Ranges, and includes the Firetail and Kings Valley mines, which produce in excess of 70 mtpa. The Company owns and operates its purpose designed rail and port facilities, constructed to deliver iron ore from its mines to Port Hedland and onto its customers. Its Iron Bridge Magnetite project is located over 100 kilometers south of Port Hedland.

Overall, the bias in prices is: Upwards.

Short term: Prices are moving.

Intermediate term: Prices are trending.

Note: this chart shows extraordinary price action to the upside.

The projected upper bound is: 6.40.

The projected lower bound is: 5.66.

The projected closing price is: 6.03.

FORTESCUE FPO closed up 0.050 at 6.000. Volume was 9% below average (neutral) and Bollinger Bands were 32% narrower than normal.

Open      High      Low      Close       Volume
6.000      6.030      5.940       6.000        19,398,272

Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period      50-period       200-period
Close:      5.72      5.36      5.80
Volatility:      39       44      54
Volume:       16,385,862       19,991,444       20,709,876

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

FORTESCUE FPO is currently 3.5% above its 200-period moving average and is in an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of FMG.AX at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on FMG.AX and have had this outlook for the last 3 periods.

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 87.5912. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 6 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 65.13. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 78 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 108.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 2 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 2 period(s) ago.

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John Heffernan

John Heffernan is a Junior Analyst at HEFFX. John is studying Economics and is a contributor on equities at Live Trading News.

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