Fortescue has been in a steady downtrend since the drop of iron ore prices in August. Since October, however, it was able to hold support at around 14 over and over again. With the recent drop in SGX:FEF1! this especially notable.
I am fundamentally bullish on Fortescue due to its fundamentals (balance sheet, green hydrogen ambitions, autonomous hauling) but...
The Australian iron ore miner has reached an important resistance. The next moves could be decisive for the near future of the stock. However, the recent drop in iron ore prices (see chart FEF1! ) makes any predictions difficult.
FMG itself is - from my point of view - still fundamentally very interesting due to low debt, its investments into the future...
When you look at the TVC:HSI vs AMEX:SPY you can see a downward trend for at least a decade. It tried a breakout in 2017 but then Trump started the trade war and it again went back to the downtrend.
Since October 2020, however, there seems to be another uptrend forming. Could this be a signal that Chinese stocks will perform better in the coming year vs US stocks?
