FGE is an ideal pairs trading idea

by Michael Gable

FGE is a good quality company that now looks great on the charts. I can see that the stock has pulled back in 3 waves (counter trend move) to 50% of the range. Yesterday's candle created a piercing pattern which is a sign of a reversal. I can also see the RSI moving out of oversold.

FGE therefore looks good on the long side. For those people worried about the resources sector, a possible trade is to short a resource stock that you are concerned about (eg, FMG, ILU, SLR), and go long FGE. If FGE outperforms your other weak resource stock, then this can be highly effective pairs trade to hedge against the short position.


Disclaimer: Michael Gable is an Authorised Representative (No. 376892) and Fairmont Equities is a Corporate Authorised Representative (No. 444397) of Novus Capital Limited (AFS Licence No. 238168). The information contained in this report is general information only and is copy write to Fairmont Equities. Fairmont Equities reserves all intellectual property rights. This report should not be interpreted as one that provides personal financial or investment advice. Any examples presented are for illustration purposes only. Past performance is not a reliable indicator of future performance. No person, persons or organisation should invest monies or take action on the reliance of the material contained in this report, but instead should satisfy themselves independently (whether by expert advice or others) of the appropriateness of any such action. Fairmont Equities, it directors and/or officers accept no responsibility for the accuracy, completeness or timeliness of the information contained in the report.

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