Fortescue Metals Group Limited (ASX:FMG) HEFFX Highlights

Fortescue Metals Group Limited (ASX:FMG) HEFFX Highlights

Fortescue Metals Group Limited (ASX:FMG) HEFFX Highlights

  • Fortescue Metals Group, the world’s No.4 iron ore miner, is looking to diversify its business by investing in energy infrastructure and exploring for gold and base metals, the head of the Australian company told Reuters on Wednesday.
  • Chief Executive Neville Power who is due to step down in February, said Fortescue was carrying out exploration work in Australia and South America focused on gold and metals such as copper, as well as on lithium.
  • “(Those commodities) can provide strategic options for us for diversification and growth from a very low-cost base”, Power said in an interview on the sidelines of an industry conference in China.

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: Downwards.

Short term: Prices are moving.

Intermediate term: Prices are trending.

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

The projected upper bound is: 5.43.

The projected lower bound is: 4.68.

The projected closing price is: 5.06.

FORTESCUE FPO closed down -0.140 at 5.060. Volume was 0% above average (neutral) and Bollinger Bands were 72% wider than normal.

Open        High         Low         Close       Volume
5.260       5.260       5.020       5.060      20,358,952

Technical Outlook
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages: 10-period           50-period        200-period
Close:                       5.24                    5.61                   5.73
Volatility:                41                        43                      50
Volume:                   19,370,446       18,613,918       19,985,458

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 11.7% below its 200-period moving average and is in an downward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume out of FMG.AX (mildly bearish). Our trend forecasting oscillators are currently bearish on FMG.AX and have had this outlook for the last 10 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 29.7436. This is not an overbought or oversold reading. The last signal was a buy 1 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 32.96. 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 1 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 -79. This is not a topping or bottoming area. The last signal was a buy 1 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 sell 18 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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