“The share price of Fortescue Metals (FMG) has recovered a great deal over the past few months as it has followed the iron ore price higher,” Michael said.
“With the Chinese economy re-opening, we expect there to be further upside in iron ore prices and therefore the share price of FMG.
“When we look at the share price chart, we can see a stock price that has moved from near $15 in November to levels over $22.
“Although that appears to be a large move, the stock is not looking overbought.
“The rally has been very sustainable because we can see the FMG share price taking the odd breather along the way.
“Most recently, it has spent the past month trading sideways in what is known as a “bull flag” (indicated by the blue lines).
“When looking for a new buy trigger, we just have to wait for the stock to break to the upside of this bull flag.
“That upside break occurred this week and this means that FMG is likely to begin the next phase of its uptrend,” Michael said.
Fortescue Metals (FMG)
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