Loser of the Day. Wednesday 19/1/2011

Fortescue Metal (down -1.1%) wasn't the worst today. AMP, Ansell, Telstra and Singtel were all worse. But since it was Winner of the Day yesterday, I thought it appropriate to focus on FMG today.

It's not a good sign when a stock breaks above a long term resistance level with a wide range bar, and then can't go on with it for a couple of days.

It looks like the smart money was selling into the buying yesterday, and now, today, there are no buyers left. And remember, today was a strong up-day on the market. The Miners were up +1% today, but FMG was down over one percent.

It doesn't look good.

But - you can't always rely on one day. Follow through selling tomorrow would be a big negative. Follow through buying would be a positive. But, I'm not hopeful about tomorrow.

Good luck

Red