Hey all,
I took a look at F&N’s chart today after hearing people talk about F&N getting a better grip on Singapore’s food and beverage industry.
From a technical standpoint, I cannot say I am very enthusiastic about F&N’s share price chart. In the chart below, you will see a red downward parallel channel. Although my performance for upward parallel channels is not good, many downward channels I see work very well – in other words, share price continues to drop further, as this chart pattern entails. Moreover, F&N is now below the 200-day moving average. From these two points alone, I cannot be a bull on such a stock.
Before tagging a sell call on F&N, the chart does tell me that F&N is at an important level now. I took out fibonacci retracement study, and the 23.6% support level -$5.40 - has been tested 3 times already. Price is not far from this support level now. The first thing I think of when I see this strong support level is that price must hold this level if it wants to continue higher. On the other hand, I am looking for such a strong support zone to be violated because of the bearish channel in place. Once $5.40 is taken out for good, I see F&N trading all the way down to the 38.2% level at $4.70. This is also near where the 200-week MA will be.
Finally, in the second chart below, you will see two brown trendlines depicting a triangular chart pattern. Depending on how you draw your trendlines, it may be descending, it may be symmetrical. Whichever way it is, declining volume does confirm it as a triangle. I do not really like price action inside the trendlines, especially the start of the triangle where there is too much “white space”. Anyway, the recent consolidation does mean F&N will be making a big move soon. Let us see how this goes.
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