F&N: An amazing reversal

A star performer today is undoubtedly F&N as it continues its amazing reversal to close at $3.92, resisted by the 100dMA.  Volume is lesser than yesterday's but is still respectable given the pre holiday mood.  MFI continues to move up, confirming that some buying momentum is back.  MACD has turned up and is closing on the signal line, seemingly poised for a bullish crossover.  That the MACD is below zero means that the upward momentum in the counter is not back in force.  If the buying momentum follows through tomorrow to break the 100dMA resistance, the next resistance will be provided by the confluence between the 50dMA and the 20dMA, where, incidentally, a dead cross formed today and is likely to be a strong resistance.  Any further move up in price would have to be accompanied by increased volume to break it.

We will need confirmation tomorrow to see if the rising 200dMA at $3.83 is now resistance turned support.  If it is, that might be a good price to buy some F&N shares.  However, one must not be too optimistic as one up day does not make an uptrend and this counter might consolidate in a wide trading band yet.

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