F&N: Rocketing upwards.

This counter rocketed upwards as it reported a 55% increase in nett profit.  This is on the back of expanded volume.  Very impressive seeing as it was a pre holiday trading session.  Resistance at $3.92 was sliced through like a hot knife through butter.  However, the dead cross at the confluence of the 20dMA and 50dMA was too strong a resistance to break today as price action touched $4.08 and retreated to close at $4.02, just under the declining 20dMA.  This is a fish that swam away from me. No matter. There are many other fish in the ocean.


For those of you who really like the F&N fish and still want to buy some, pay attention to the 100dMA.  This seems to be the resistance turned support at $3.93.  We need confirmation in the next trading session.  This would be a safer level to buy some F&N shares if the support is confirmed instead of chasing.
 
The MACD is closing in on the signal line and a bullish crossover seems most probable.  MFI has risen above the oversold territory and has plenty of room before it reaches 50% which may act as resistance.  Of course, there is plenty of room before it is overbought.
 
Using candlesticks, I've intuitively identified three higher levels of resistance if the counter moves higher.  Good luck to interested parties and congratulations to parties brave enough to buy earlier this week.

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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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