Franco-Nevada Corp. (TSX:FNV) has been one of those gold plays that have not moved in lock step with the price of gold. In fact, FNV has been trading near all time highs in 2015 even as gold languished at multi-year lows. With gold moving higher, the momentum that FNV had in the past is now getting amplified even more with the stock just breaking out of a key resistance level.
As mentioned, a key resistance level at around $72 - $73 was broken to the upside in the last few days leaving shares of FNV at all time highs. With gold moving higher, an already momentum driven stock like this one looks to be getting even more upward momentum. Looking further up, we will look for the $80 and $90 dollar level to serve as psychological future resistance. Looking at support, the recent resistance turned support level at $72 - $73 would now serve as bottom support on any weakness.
Our trade strategy would be to enter the stock on strength. Upon entry, we would place our stop loss at $72 while our upside target would be $90, at which point we would be sellers. Based on today’s prices, our upside potential is 20.3% while our downside risk is 3.8%.
The stock price direction for the day for FNV:CA is DOWN. This stock is currently not trending in any direction or the stock may be fluctuating over the last 5 to 7 days, but after all the fluctuations, finds itself in roughly the same price point as it did when BullishInvestor.com started analyzing it 7 days earlier. As a result, the trend for this stock is too weak to properly analyze at this time. That being said, short spurts of share price increases or decreases can still occur even though a trend has not been properly analyzed which is why watching the BullishInvestor.com daily ratings may be able to pinpoint quick entry and exit levels in this stock. Based on BullishInvestor.com’s proprietary algorithms, FNV:CA is currently signalling NEUTRAL.
The most recent Candle Stick pattern for FNV:CA is the Three Inside Up/Down.
There are two possible reasons for the Hold rating currently given to FNV:CA. The first reason is that there may be indecision among the technical indicators or most of them may be neutral for FNV:CA. If the stock chart looks flat lined or is in the midst of a trend direction change, most likely this is why FNV:CA is showing Neutral. If, however the stock is currently in a visible up or down trend, the reason for the Hold may be because the BULLISH or BEARISH rating has already passed.
The last BUY was registered on Mar 08, 2024 when FNV:CA was trading at $ 155.22. Armed with this knowledge, there may still be some more strength left in this current trend or it may be near a tipping point, the market has not given a clear indication yet.
As such, it may be a wise decision to hold your stock or continue to wait on the sidelines in FNV:CA until BullishInvestor.com changes the rating for FNV:CA.