iron ore price heads higher!, page-9

Hello All,

I would like to post a couple of price charts with some lines marked on the chart. First is a monthly chart and my take on it.I think it is stuck beautifully in a parallel channel.

Second one is a daily chart showing some bullish argument for the bulls. I think that the chart is self explanatory. Or on the other hand, I can put it out this way. I think that the price might put in a short term bottom in at $2.87 (This will be higher low to $2.81 formed on sep'6 2012).

In my rosy eyes the price has formed a wedge bottom and is coming out now. For longs, the short term target will be at $4.32 and medium term target will be $5.01. But by looking at the monthly chart, the price is still in a downtrend and it needs to break above ~$5 and test that level as a support to see a sustainable uptrend or in laymen's term to get in a bullish uptrend. The odds are in favour of saving one's shirt now, if they are going to go long now with a stop at ~$3.7 rather than trying to predict the bottom price (Some people are good at that as well, but not me).

Good luck to all holder.

Cheers
PMT

PS; I trade the volatility in FMG sp rather than the shares itself. So my position is irrelevent I guess.

PPS1: Also from a operating point of view fmg is not an explorer (only) anymore to hit the pay dirt so that the sp can skyrocket like before, making 100% returns and so on. I think they are getting to a stage of maturing their business, having developed (or still developing) their assets and having cash flows etc. I think it is fair to say that the future sp will depend upon how well they can manage the business and contain risks. So when one looks at trading this stock, they should also consider from this point of view. The point I'm trying to make is, the sp has lost a majority of the speculative interests and more inclined towards operations, cash flow etc. I wanted to write this in a general context to a trader/investor, not to say whether they are doing a good job or a bad job. But there is a saying that history repeats. So keep an eye out and be alert to whatever may come in the future.

PPS: In the charts of FMG, MGX, AGO I looked at, I like the chart of MGX, because i think it has done its time. Anyway I will post a chart on that stock thread a bit after.