Ferrexpo’s share price was heavily penalized and is now in an oversold situation near to a solid support area.

Technically, the security has been dropping for several weeks. This fall lead shares of Ferrexpo toward the GBp 56.5 support area, which could become a stepping stone for a bounce in prices. This push could draw an upturn movement, thus launching the equity toward the GBp 65.75 resistance level. Even though, daily moving averages are still in a bearish trend, the oversold situation could encourage a renewed interest in Ferrexpo, but foremost, the bottom line of the rising wedge could support the subsequent bull run.

Therefore, the proximity of the GBp 56.5 support is an opportunity to open a long position in Ferrexpo. The first goal is a return in the GBp 65.75 resistance area, that is a potential of moren than 10%. In fact, the security has to cross this area in order to re-establish a bullish trend in the short term. A stop loss order can be placed under the support currently tested.