FNI: Downside Target of Php1.80 Achieved. What’s Next?
In our Equity Advisor issue last March 18, we noted that Global Ferronickel Holdings, Inc. (FNI) would likely slip towards Php1.80 following its break below Php2.50. As you can see, the stock has indeed slipped towards the said target. Moving forward, a support at its previous low at Php1.80, a presence of a bullish hammer candle plus an extreme oversold RSI reading suggest that FNI may be due for a near term rally. Here’s a chance to ‘catch’ the stock but only with an intention to sell it shortly. Following a bounce off Php1.80, FNI may rebound and aim for its next notable resistance between Php2.42 and Php2.54.
FNI write-up from the Trading Edge Equity Advisor:
March 18, 2015
We should avoid to buy Global Ferronickel Holdings, Inc. (FNI). Actually if any one of you is holding on to the stock, you might want to consider selling it first. This is because the stock will likely weaken further following its breakdown from a topping formation when it slipped below its supposed support at Php2.50. Trend has now shifted to the downside so even if the RSI is already at an oversold level, chances are the stock will still slip. This fall may actually send FNI to a downside target of Php1.80. This negative outlook on FNI may only be invalidated if the stock manages to bounce past Php2.50 in the next few days.
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