fmg - excellent opportunity

From The ASX Goru
http://asxguru.com.au/2011/01/934/

For those who trade CFDs, Fortescue Metals (FMG) presented as an excellent opportunity today with the stock breaking through major resistance and pushing up into blue sky on the back of a very positive production update. The above chart shows the major resistance level at just below $7 being well and truly broken. That resistance line has been tested and has failed on a number of occasions over the past several months.

The break past $7 today was a very bullish buy signal, and it was proven. As the market drew to the close, the share price was chased higher by strong buying which forced the stock price to close on the days high of $7.27. Fortescue ended they day 8% higher today which made it one of the best performing blue chips on Tuesday.

To add to the strong results, iron ore spot prices are once again moving towards the past record highs that were made in 2008 -which was before the global financial crisis.

My personal preference was to just trade the opportunity but the fundamentals behind this company are very strong at this stage. The breakout today suggests higher prices will be made in the near future. This presents as a good long term investment in my opinion but for me it was just a trading opportunity.

Further gains are likely to be made tomorrow as well, so it may still offer another opportunity for the CFD traders over the coming days.