FMG going to $7?Fortescue LtdASX_DLY:FMGflyinkiwi10One of Australia's market darlings sliding. A core holding in many institutional holdings. I haven't cracked the annual report, but the price of Iron Ore is breaking lower. This will mean lower profits and margins per tonne for FMG. General iron ore weakness over the past few years has been a drag on the share price. My targets are solely based on a confluence of technical indicators and form two zones, the lower one is at $7/share based on a Fibonacci retracement level and a 1:1 extension of the previous steep decline. How low will it go? Nobody knows. There is significant weakness in the Chinese economy and demand is cratering. Massive property developer bankruptcies starting 2022 have resulted in a massive surplus of properties on the market and price declines of up to 50%. In this environment, new builds have been crushed. No new builds, no demand for rebar, no need for Iron Ore. If you look at how long it took the Japanese property to rebound following their property bubble on the late 80s early 90s a rebound could be 20 or 30 years away unless new sources of demand are established. Investors won't be willing to wait that long. My targets are only for the following 12-24 months. The $6B in investment in power generation infrastructure to power electric ore hauling trucks is also likely to be walked back. The answer? Diesel.