The GBp 134.1 support, currently tested, should allow Ferrexpo to rally again.

The iron producer increased its sales by 11% in 2013. Regarding its financial statements, the main movers for the business were Japan, Turkey and Germany. According to Surperformance© ratings, the company represents an opportunity for a trading strategy. Indeed, its value and visibility makes of it a big deal. The low valuation in terms of P/E ratio (only 4.9 times estimated figures for 2014) could renew investors interest in Ferrexpo. Moreover, several brokers made upward revisions on revenues and EPS for the ongoing financial year.

Despite the midterm downtrend, Ferrexpo has huge chances that an upturn in prices appear as it approaches a key level at GBp 134. Its weakened trading range could suffer a reverse in the short run. In fact, moving averages in all time scales are set at higher levels than the current pricing of the stock thus prices could soon meet them as in the past.

In sum, investors could go long on Ferrexpo above GBp 134 as its downside potential seems limited and the timing perfect to benefit from a technical rebound. The target may be the GBp 145 level and a stop loss is counseled below GBp 134.