Fortescue Metals Group Sued For Compensation

Fortescue Metals Group Sued For Compensation

The Federal Court has granted native title to 2,700 square kilometers of land in the ore-rich Pilbara to the Yinjibarndi people, an area just north of Karijini National Park incorporating FMG’s multi-billion dollar Solomon Hub mine.

The decision paves the way for the Yindjibarndi people to sue Andrew Forrest’s FMG for millions of dollars in compensation.

The Federal Court ruling — delivered in Sydney on Thursday — saw FMG’s share price tumble 19 cents to $5.19.

The company opened lower again on Friday morning, dropping to $5.05 before recovering slightly to $5.08 in a down day for the market.

FMG chief executive Nev Power told ABC Radio Perth he thought the Federal Court ruling in favour of the Yindjibarndi Aboriginal Corporation (YAC) was wrong.

“I think we are likely to appeal,” he said.

“It’s a very unusual decision in that the judge has found exclusive native title possession on this land, which we think is unlikely to be the case. So we will be looking at it definitely and considering an appeal.”

Technical Analysis

Overall, the bias in prices is: Downwards.

Short term: Prices are moving.

Intermediate term: Prices are trending.

By the way, prices are vulnerable to a correction towards 5.30.

The projected upper bound is: 5.43.

The projected lower bound is: 4.70.

The projected closing price is: 5.07.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 23 white candles and 25 black candles for a net of 2 black candles.

Momentum Indicators

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 21.1480. This is not an overbought or oversold reading. The last signal was a buy 0 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 47.11. 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 55 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 -97. This is not a topping or bottoming area. The last signal was a buy 0 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 3 period(s) ago.

Rex Takasugi – TD Profile

FORTESCUE FPO closed up 0.070 at 5.060. Volume was 19% below average (neutral) and Bollinger Bands were 54% narrower than normal.

Open   High    Low     Close    Volume
5.030   5.140   4.990  5.060   17,831,490

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

Moving Averages: 10-period     50-period     200-period
Close:                       5.23               4.99               5.74
Volatility:                31                   47                   54
Volume:                  18,433,606   22,114,124    20,269,182

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 11.9% below its 200-period moving average and is in an upward trend. Volatility is low 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 20 periods.

“Investing in Thailand? Contact Us.”

The following two tabs change content below.

Ivy Heffernan

Ivy Heffernan, student of Economics at Buckingham University. Junior Analyst at HeffX and experienced marketing director.

You must be logged in to post comments :  
CONNECT WITH