F&N analysis

Evening traders/investors,

This is F&N, F99.SI. You have probably seen their logo on drinks everywhere. Anyway, I have done an anlysis of its chart.

Ever since a whole year ago, F&N has been in a steady climb, gaining 60% – 70% to date. Generally I would not like looking at such charts; however, the occurence of a chart pattern prompted me to take a look at Fraser & Neave.

First up, I have drawn an upward parallel channel that F&N has respected for a whole year already. Currently, F&N is testing the bottom of the channel. I have also drawn an immediate support level of $6.20. Looking at the strength of this uptrend, I am not going to be quick to call for a reversal, especially since there is no pattern indicating that. I see F&N as looking bearish if it does not start heading back above the 50-day MA soon. If F&N breaks below the channel, I shall look for it to trade all the way down to the 200-day MA.

Next, I have drawn up fibonacci retracement levels. Looking at the gradient of the 200-day MA, it should head to the 38.2% retracement level, which is a reason why I feel any substantial downside should meet with support at the 200-day MA. When more than one factor contributes to a key level, whether it be resistance or support, I will respect the level alot. An example of this happening – look at the purple arrow I have drawn. 23.6% retracement level met the bottom of the parallel channel, what happens next was a short rebound.

Anyway, for now I will be hoping F&N continues to move inside the strong parallel channel. Lets see what happens.

All analyses, recommendations, discussions and other information herein are published for general information. Readers should not rely solely on the information published on this blog and should seek independent financial advice prior to making any investment decision. The publisher accepts no liability for any loss whatsoever arising from any use of the information published herein.

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