$Fortescue Ltd (FMG.AU)$ shares fell 3.14% on Thursday, with trading volume expanding to A$125.9 million. Fortescue has fallen 6.89% over the past week, with a cumulative gain of 28.04% year-to-date.

Fortescue's technical analysis chart:

Technical Analysis:

• Support: A$17.32

• Resistance: A$20.84

• Price range A$17.32 to A$20.84: The trading range indicates a heavy concentration of selling orders, with the stock price on an downward trend. There's a high concentration of trapped positions within the trading range, which implies strong resistance to any upward movement. The stock started to decline near A$20.84 due to selling pressure and repeatedly touched the A$17.32 level, where it seems to find some support. If the decline continues, pay attention to whether the support level near A$17.32 holds firm.

Market News :

Fortescue revealed its quarterly report on October 24, 2024, marking a strong start to FY25.

In Q1 FY25, a total of 57.1 million tonnes (Mt) of ore was mined, a 2% increase compared to the same period last year, with particularly strong results from Iron Bridge. The total ore processed reached 48.0 Mt, consistent with Q1 FY24 figures.

Iron ore shipments for the quarter totaled 47.7 Mt, marking a 4% increase from Q1 FY24 and setting a new record for the first quarter. This included 1.6 Mt from Iron Bridge, which surpassed the full year shipments of FY24.

The C1 cost for hematite was $20.16 per wet metric tonne (wmt), 12% higher than Q1 FY24, due to a higher strip ratio—2.0x in Q1 FY25 compared to 1.7x in Q1 FY24—and inflationary pressures. The consensus estimate had predicted C1 costs of US$19.20 per wmt for the quarter.

The company has announced its FY25 guidance, which includes the following projections:

• Iron ore shipments of 190 - 200Mt, including 5 - 9Mt for Iron Bridge (100 per cent basis).

• C1 cost for Hematite of US$18.50 - US$19.75/wmt.

• Fortescue Metals capital expenditure of US$3.2 - US$3.8 billion.

• Fortescue Energy net operating expenditure of approximately US$700 million and capital expenditure of approximately US$500 million.

Overall Analysis:

Fundamentally, focus on the company's performance and operational status. Technically, pay attention to whether the support levels hold and if the resistance levels can be effectively breached.

In this scenario, investors should adopt a cautious strategy, setting stop-loss points to manage risk and maintaining ongoing vigilance regarding company developments and market conditions.

Source: Fortescue