F&N: Up Trend Still Intact But Need to be Cautious!

  • Post author:

Base on current daily and weekly chart, F&N is still on uptrend. F&N is still trading above 50D and 200D SMA. However, need to watch out for a few potential reversal signals:

  • The stock seems like trading at Elliott Wave 5 now on Daily chart. If F&N completes Wave 5, a bearish corrective wave A-B-C will start.
  • $6.80 is the previous resistance level and 50D SMA. Need to see whether F&N is able to hold above this $6.80 resistance turned support level.
  • Shooting Star and Evening Star were formed at the historical high F&N stock price, these two are reversal candlestick patterns.
  • 2/5 EMA is going to show bearish crossover on both daily and weekly chart.
  • 2/5 EMA is going to cross down 20 SMA on daily chart.
  • If all the above bearish signals appear with increase in trading volume, who say there is no “Sell in May and Go Away” this year?

If the $6.80 support is strong and F&N continues the uptrend, I will still NOT enter any long position.

Reason? My rule: NEVER BUY AT HIGH!

So, I am FULL BEAR on F&N stock and preparing to short!

Continue Reading F&N: Up Trend Still Intact But Need to be Cautious!

F&N: Trading in a Triangle

  • Post author:

F&N is current trading in a Triangle. Upside capped at the Triangle Resistance and 200D MA resistance between $5.90 and $5.95. Base on current chart, downside risk is higher than upside potential as the 200D is trending down in additional to current poor world economy and debt crisis.  Breaking down from this Triangle will send F&N to the price target of about $4.75.

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F&N: Upside Limited

  • Post author:

Base on the chart, F&N uptrend is still intact however upside is limited due to the following two reasons:

  1. Resistance at about $5.80
  2. Current PE of 21.5 is higher than the past 3 years average PE of 20.8 and also the STI PE.

It will be interesting to see whether F&N can hold above the up trend support at about $5.30 to $5.40.

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