Charlie Aitken will probably be patting himself on the back today. On Friday morning he said buy iron ore:
“Obviously, the most beaten up sector in Australian equities is pure play iron ore stocks,” says Bell Potter Executive Director Charlie Aitken. “Yet, from a trading perspective they should be bought. All I know is every time the AFR runs a front page article about how much less Andrew Forrest is worth on paper that it’s usually the short-term bottom in iron ore prices and a solid, tradeable rally in Fortescue(FMG) follows.”
“If we get any stability, or dare I say it, actually a rally in iron ore prices, pure play stocks such as Fortescue and BC Iron (BCI) will bounce +30% to +50% in quick time. That is why they should both be bought for a trade on RSI’s that suggest they are massively oversold.”
