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

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

Venture Corp: Forming Double Bottoms

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Venture is forming a Double Bottoms chart pattern with neckline at about $7.00. Price Target for this Double Bottom breakout is $7.60.  However, current candlestick pattern does not suggest the breakout soon as a Hanging Man was formed at the 50D MA resistance. If a bearish candle is form in the next trading day, an Evening Start candlestick pattern will be formed indicates a reversal to short term down trend again. Anyway, it is a good pattern to trade on Venture on either direction!

Continue ReadingVenture Corp: Forming Double Bottoms

Olam: Down Trend Continues

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An Evening Star Candlestick pattern was observed at the 50% Fibonacci Resistance a few days ago. As expected, Olam reversed to down trend after the rebound. Current support is $2.645 followed by $2.471.

Note: Olam is currently trading below 20D, 50D and 200D MA. The 20D MA has also crossed down 200D MA which is a bearish chart pattern.

Continue ReadingOlam: Down Trend Continues