Fortescue Metals Group Ltd’s [ASX:FMG] share price is trading at $13.92 at time of writing, down from the recent all-time high of $15.25.
The FMG share price weathered the initial impact of CODIV-19 rather well, but will it be able to continue its upwards trajectory?
What’s taken place at Fortescue…
Like many companies, Fortescue Metals felt the effects of the pandemic in March.
From the all-time high made in January 2020, the FMG share price plunged 36.29%, which in the grand scheme of things, was not that bad compared to other companies’ fortunes.
The company rebounded quickly on the back of quarterly results announced in April.
Outlined in the announcement were some strong results for the company:
‘• Record third quarter iron ore shipments of 42.3 million tonnes were 10 per cent higher than Q3 FY19, and year-to-date shipments are a record 130.9 million tonnes
All of this news takes into account business up to the end of March 2020, with the pandemic running through the first half of 2020.
Now with talks of a second wave in China, the question now is – can the FMG share price run continue?
Where could the FMG share price go?
At present, China has growing concerns of a second wave with recent reports emerging that some 400,000 people are in lockdown after a confirmed virus spike near Beijing.
Where might this take Fortescue’s share price?
We can see it hit a new all-time high of $15.15 before declining to $13.67 at the time of writing.
If the price were to continue to the upside the levels of $16.20 and $15.50, it may provide future resistance.
On the downside, if the price were to drop to $12.89 and $10.70, it may provide support in the future.
The FMG dividend yield stands at well over 7% now, so it will be interesting to see what the potential slowdown in manufacturing will do to its payout.
On that note, we have a great resource for you if you’re a dividend investor. Editor Greg Canavan’s ‘Five Dividend Stocks with Potentially Higher Payouts than Banks’ which you can download right here.
For The Rum Rebellion