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FMG - Fortescue Metals

Discussion in 'Stocks 0-H' started by GreatPig, Sep 6, 2005.

  1. tech/a

    tech/a No Ordinary Duck

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    Ah
    I see a pre market release of their Quarterly activities report.
    Could explain the interest now we will see how it is seen on
    release.
     
  2. Ann

    Ann

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    It appears the price hike in FMG and other iron ore stocks is related to the Vale dam disaster in Brazil. They have introduced large production cuts. I have been reading about Vale every day since the disaster and didn't connect the risk to the Iron Ore price, so need to improve my FA!
    This has made the price of iron ore rise dramatically. I have been trying to find a chart for Iron Ore inventories but no luck so far. If the inventories are high the hike may be short lived, just don't know.
    This is a current price chart for Iron Ore.

    iron ore 31.1.19.png
     
    noirua likes this.
  3. tech/a

    tech/a No Ordinary Duck

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    Ann

    Good pick up
    I note price was at resistance in April when Iron was a similar price.
     
  4. tech/a

    tech/a No Ordinary Duck

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    Having said that.

    If we were trading purely from the chart we
    wouldn't have to know WHY.
    We only care that price is moving in our direction
    and we look for reasons to stay in or pull out
    of the trade.

    We just trade the analysis.
     
  5. tech/a

    tech/a No Ordinary Duck

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    Very interesting day.
    another very high volume day with FMG
    creeping higher to close on its highs.

    The 15 min chart shows a diminishing volume M/A
    I saw today as a distribution into strength.
    But I maybe wrong with the declining volume possibly
    indicating a lower supply. I doubt this as price was contained
    buyers didn't have to look much higher to get a fill.

    Next resistance is around $6 but I doubt it will make it.

    So while Im out I wont be re entering until I see a pattern form
    which will be part of the pullback I think FMG will have to have
    Sooner than later.

    FMG 4.gif

    FMG 5.gif
     
    Miner, sasch and myrtie100 like this.
  6. Ann

    Ann

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    Thanks tech/a, I have noticed stocks tend to mirror their commodity prices, which is not very surprising really.
    True but I like to know why stuff happens. I find the markets very interesting.
     
  7. tech/a

    tech/a No Ordinary Duck

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    By the time we find a reason most of the move has gone
    If indeed we ever REALLY “know”
     
  8. Ann

    Ann

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    No, if I had been smarter with FA I saw the Vale disaster in Brazil mentioned on the weekend and saw it would take it off line for a while. I knew it was an iron ore company, I should have looked at its market weight. Had I been smarter I would have realized as it was such a major player being taken out, that would put pressure on the iron ore price, that would have made me less bearish regarding a pullback. I am sure a number of people would have had broker alerts on Monday, about it being a good trade because of the disaster.
     
    Smurf1976 likes this.
  9. tech/a

    tech/a No Ordinary Duck

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    Ann

    I don't know why you would even have to try and trade like this.
    Whatever you do to trade nearly 100% correct is ALL you need.
    Why waste your time with anything else?
     
  10. Ann

    Ann

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    Because I believe you and I were right about FMG about to do a retrace tech/a, not that we will ever know for sure. It was on the Friday chart we made the call, the day before the accident, so no possibility of an indication for a rise on the chart. I don't like being wrong when I chart. Any time I fail, I want to know why. Then I want to get better at what I do. It is the reason I would never buy Qantas, stuff might happen with no prior warning.
     
  11. tech/a

    tech/a No Ordinary Duck

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    We are indeed different.
    I have no expectation only
    contingencies. If my anticipated trade doesn't pan out
    I re adjust. Wrong is simply a cost of doing business.

    In every case I'm wrong or right because of the anticipated
    price action occurred or didn't occur. Buy Hold or Sell.
     
  12. Ann

    Ann

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    Clearly we both enjoy our approaches, I bet we will often agree as in FMG. However if I reckon something may not happen, I will give you a heads up so you can re-think a trade. Hope you will do the same for me? :)
     
  13. tech/a

    tech/a No Ordinary Duck

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    Done !
     
  14. Ann

    Ann

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    Good man! :xyxthumbs:xyxthumbs:xyxthumbs
     
  15. Ann

    Ann

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    Smurf1976 and Miner like this.
  16. Miner

    Miner

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    Thanks for the footage. It is horrifying. No wonder in last few days three different head hunters approached me for PM roles of TSF and alike areas. All three represented reputed miners in Australia - listed as ASX 200.
     
  17. Ann

    Ann

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    That sounds great Miner, what does PM roles of TSF and alike areas mean?
     
  18. tech/a

    tech/a No Ordinary Duck

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    FMG powering along.
    Very solid.
    Approaching old resistance
    A lot of demand supply is being
    met easily.

    See if there is a pullback at this level for another
    possible trade.
     
  19. tech/a

    tech/a No Ordinary Duck

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    FMG now has a very solid volume base and has not found a level at which
    price has found resistance. Volume is now dropping off as it rises. This indicates
    supply is less and as such holding is preferred. So price rises without needing
    to battle through supply. Demand is also less as interest at these prices wanes.

    There is a topping pattern evident in lower time frames. I see $6.22 a critical level
     
    myrtie100 likes this.
  20. ducati916

    ducati916

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    For me, it would now be a short.

    jog on
    duc
     
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