FMG.AX closes lower for the 2nd day in a row


Fortescue Metals Group (FMG.AX) Technical Analysis Report for Aug 10, 2018 [1 min read]
Highlights
FMG.AX breaks below 20-day moving average
FMG.AX closes below its opening price unable to hold early session gains
FMG.AX unable to break through key resistance level
FMG.AX closes lower for the 2nd day in a row
FMG.AX ends the day on a bearish note closing near the low of the day
TQ Sentiment
Report Sentiment: 62% Bearish
Technical Forecast:
Overview

Moving lower for the 2nd day in a row, FMG.AX finished the week 2.09% higher at 4.39 after losing A$0.02 (-0.45%) today on low volume. Trading A$0.02 higher after the open, Fortescue Metals was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session. Ending with a weak close near the low of the day sets a bearish note for the next session.

Daily chart for FMG.AX
Volatility

Friday's trading range was A$0.05 (1.13%), that's below last trading month's daily average range of A$0.09. Things look different on a weekly scale, where volatility is slightly below the markets average with the monthly volatility being slightly below average.

Price Action

In spite of a strong opening the share closed below the prior day's open and close, forming a bearish Engulfing Candle.

Support/Resistance

Unable to break through the key technical resistance level at 4.41, the stock closed below it after spiking as high as 4.43 during the day. The failure to close above the resistance might increase that levels importance as resistance going forward.

Trend

Though the market is experiencing a short-term up trend, this could just be a correction, as both the medium and long term trends are still in negative territory. FMG.AX broke below the 20-day moving average at 4.41 today for the first time since July 26th.

Order Flow

Buying might accelerate should prices move above the nearby swing high at 4.48 where further buy stops could get activated. Further selling might move prices lower should the market test July's close-by low at 4.25.

Conclusion

Both sentiments, the classical technical analysis and our quantitative statistics are in perfect alignment today showing a slightly bearish sentiment for the next trading day.

Market Conditions for Fortescue Metals Group
Condition Forecast Direction Win Avg Worst Best Events
Closed below last periods low TQ Pro Members Only
Close to S1 Support TQ Pro Members Only
Bounced off Technical Support S1 TQ Pro Members Only
5 Consecutive Lower Closes TQ Pro Members Only
More market conditions identified for TQ Pro members...
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