You will recall at $40 we suggested that shareholders of FDG hedge their positions for a potential correction.
This correction appears to have completed itself, both on the daily charts and the weekly charts.
Therefore, it is prudent to lift the hedge on the stock, or if you were waiting for an area to get long the stock, now appears to be a good time.
Adding fuel to a potential strong rally in the stock is the very likely prospect that the Canadian dollar has peaked and should begin a major decline. This will help Fording to keep their prices in check and allow their growth to continue.