“I have spoken previously about there being lot of negativity around Chinese economic growth and iron ore prices,” Michael said.
“In early June, we sensed that this bearishness was overdone, and the market was in a similar position to November 2022, which saw a massive rebound in iron ore stocks.
“Not only has the FMG share price bounced very well these past few weeks, there still could be significant upside from here.
“We can see that the sharp rally in FMG these past few weeks has brought the shares back up near the major resistance zone near $23.
“The more you test a technical level, the more chance you have of breaking through.
“That is, FMG has tested this $23 area on a number of occasions this year and this means that we could see an upside break fairly soon.
“It is therefore looking likely that we get a break above $23 which would then lead to the next uptrend.
“If we see FMG trade above $23, then that should lead to a retest of the 2021 highs near $26,” Michael said.
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