FERREXPO Tip: SPECULATIVE BUY Current price: 353.60 Target price: 450
Bullish points: - Lowly shares valuation
- Strong balance sheet
- High iron price
- Premiums paid on pellets likely to increase with stricter emission standards
- Strong ESG credentials
Bearish points: - Iron prices could fall back down to Earth
- Shareholder has a controlling stake
- Major...
Looking at a long on FXPO, oversold on my indicators, shown some rejection from 100ma, although not a convincing move. That being said, positive growth is a plus for FXPO. Both weekly and daily charts are above the 200ma.
We may see another down day so looking for a positive move higher on high volume for an entry. Targets:
Short term: 180
Medium: 200
Long: 235
Previous gap was successfully closed but at the same time, several poor lows were created on the way up. Sellers might have some unfinished business at 164 GBp level and could continue opening short positions aggressively till 156 GBp level. In case of even small panic, we can expect retest of 149 GBp and 137 GBp levels.
Selling in LSE:FXPO ended on Monday and since then, buyers started to pile on moderately. In case of continues recovery above 163 GBp, potentially we could see a gap closure at 170 GBp.
