At the time of writing, shares of Fortescue Metals Group Ltd [ASX:FMG] are down by 1.37%, to $3.61 per share.
Fortescue Metals Group is considered a blue chip company and tends to move with the market. That said, the ASX 200 Index is up by 19.6 points to 6,184.9 points at time of writing:
What to look for in Fortescue Metals’ share price
There’s little explanation why Fortescue Metals Group is down today, with the market up. The company hasn’t reported an announcement. That said, considering the recent slump in the Aussie market, Fortescue Metals Group may be seeing a lower share price as a result:
Major support stands around $3 per share on the chart above. Minor support starts around the current share price, roughly where Fortescue Metals Groups is trading today.
Iron ore impacting Fortescue Metals’ share price?
Let’s take a look at the iron ore price ― the main contributor to Fortescue Metals Groups earnings:
The iron ore price has traded sideways for most of the year, despite being volatile. There’s little indication whether the price will move higher or lower in the future. That said, given iron ore is the main source of Fortescue Metals Groups revenue, a stable iron ore price isn’t necessarily a bad thing.
A break above US$70 per tonne could see a re-test of 2018 highs.
The bottom line: Fortescue Metals Group looks mostly exposed to market risks today, rather than the iron ore price. We will track this story once a week and analyse future developments. That said, the share price is currently trading around a minor support region and could head lower, which is happening today.
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