FMG.AX pushes through 50-day moving average
Fortescue Metals Group (FMG.AX) Technical Analysis Report for Jun 14, 2018 | by Techniquant Editorial Team
FMG.AX finished Thursday at 4.65 surging A$0.10 (2.2%). This is the biggest single day gain in over two weeks. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 4.64, the share confirms its breakout through the prior session's high having traded A$0.01 above it intraday. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (FMG.AX as at Jun 14, 2018):
Thursday's trading range was A$0.12 (2.64%), that's far above last trading month's daily average range of A$0.09. Weekly volatility is also higher, being above the markets average with the monthly volatility being slightly below average.
Regardless of a weak opening Fortescue Metals managed to close above the previous day's open and close, forming a bullish Engulfing Candle.
Breaking through the key resistance level at 4.62 today, it is now likely to act as support going forward. After having been unable to move above 4.64 in the prior session, the market ran into sellers again around the same price level today, failing to move higher than 4.65.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already. The stock managed to break above the 50-day moving average at 4.65 today for the first time since May 31st.