Technicals on Fortescue Metals Group (ASX:FMG)

ASX:FMG has been trading in a strong down trend since February 2014, which is still technically intact. The latest leg down has lost momentum over the past two months and the price has been trading sideways. Wednesday's price action broke above minor resistance of $2.02, suggesting that higher prices could unfold in the short term. The potential upside price target based on the breakout is $2.30 to $2.40. Over the long term, we don't see a reversal of the down trend and we believe that any further strength from here is likely to be limited. Corrective bounce. To read a full technical update By Violeta Todorova our Technical Analyst click the (VIEW LINK)