The Responsible Trader

STOCK CHARTS AND ANALYSIS –  FNI

This stock has been called many names and notorious ones at that. Among which are: FOREVER NA IPIT, FOREVER NA IYAK, etc.   Being considered as neutral, we are again asked to weigh in on this stock. Do we still see anything POSITIVE in it? What are the relevant things to watch out for?

In accordance with our Independence Day commitment, following is our Technical Analysis of  FNI (GLOBAL FERRONICKEL HOLDINGS) as of January  18,  2015.

This is the FIRST of our  THREE for FREE for this week (This is the THIRD of our NINE IN THE EYES OF MINE. Two have already been shared in our BooKAKA Premium: DAVIN and SECB.:

TA – TRT Way – Straight from the Chart

POSITIVE

1.  Falling Wedge Pattern. There is NO FOREVER even in stock trading. The only thing POSITIVE right now with FNI is a tightening Falling Wedge Pattern. This Pattern is very well known to Technical Analysts as a Reversal Pattern. In warfare, this is like giving up territories to lure your opponents to overextend themselves believing that they have already achieved victory only to be taken by surprise in the end.

The only problem is WHEN?  It needs to take out the immediate Resistance of P1.34 and hold the Support at P0.46.  Failure to hold Support could send the stock to its next critical support of P0.27.

NEGATIVE

1.  Price action below all our standard Moving Averages 15 EMA & 20 SMA, 50 SMA and 200 SMA indicates that the stock is Bearish Short Term, Medium Term and Long Term.  Since most of the stock’s price action since the early part of 2015 have been below the 200 SMA it is not only Bearish but is already actually in Bear Territory.

2. Dead Cross of 15 EMA under all Standard Moving Averages. This Dead Cross has given a SELL Signal long time ago.

3.  Unabated Selling Pressure. As shown by our Indexed Volume Indicator, Sell Volume is still at 75% while  Buy Volume is at 25%.

NOTES:

1.  Responsible Trading is evidence-based trading.  When we talk about Positive and Negative we are considering this as evidence that supports a Low Risk, High Probability Trade. Positive points are things that could work in your favor. Negative points are things that you have to watch out for.

2.  On the opposite side of Pattern Targets are Pattern Failures. In case you decide to take this trade, always remember to set a stop loss based on your established risk tolerance level.

3.  September is a very significant month for us. It was at the same time this year that we introduced Responsible Trading to mainstream social media.  Starting September 1, 2015, since you are already familiar with our caption “TA – The Responsible Trader’s Way – No Hyping, No Bashing, Just Plain Cold Facts” we are changing this to TA – TRT Way – Straight from the Chart.
The Chart and Analysis is presented for educational purposes only and should NEVER BE TAKEN as a RECOMMENDATION to BUY, HOLD, or SELL.
Please trade with CAUTION, please trade with CARE. As always, IT’S YOUR TAKE, IT’S YOUR CALL. IT’S YOUR MONEY AFTER ALL.

Good luck on all your trades.