In looking for some insight into the near term prices for IO and FMG stock, I think it is smart to check out the charts. I'm talking the charts of BHP, RIO and XMJ. To my eyes, the chart formation of BHP for past 3 months is showing $35-36 and then $38-39 coming in the next few months (December-February). A few reasons for this could be (some specific to BHP) are, 1. Investors showing a strong demand for the upcoming spin off and wanting a share of it, 2. Upcoming dividends, 3. An anticipation of some capital return, 4. Further falls in the AUD against the USD and 4. A huge bounce in the Iron ore price that is currently unimaginable but possible. The RSI for BHP and RIO is bumping up against 50, wanting to push through even with recent IO price falls.
I hold BHP. And I have thoughts of switching my capital to FMG at these prices. But my rules don't allow me to switch 800k to a stock that is outside of the top 10. But to all current holders of FMG, I suggest to stay calm and hold as I feel a sizable bounce is coming in the IO price. This is consistent with the Mahendra gentleman that kates, I think it was, mentioned and should not be taken lightly. A large bounce is also probably because it is not expected. Another impetus is the Santa rally and the fact that IO stocks have underperformed the past 1 month compared to the bank stock bounce.
FMG could easily go back to $4 (conservative) and even $5. Think counter to what is going on and is being felt.
FT.
AGO Price at posting:
22.5¢ Sentiment: None Disclosure: Unspecified
BCI Price at posting:
84.0¢ Sentiment: None Disclosure: Unspecified
FMG Price at posting:
$3.03 Sentiment: None Disclosure: Unspecified
MGX Price at posting:
43.0¢ Sentiment: None Disclosure: Unspecified
