Famous Brands Ltd: Still Bearish

19 October 2017 | Moxima Gama
 


BOTTOM LINE: FBR has breached the support trend-line of its primary bull trend

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Possible scenario:

In our last commentary in July, FBR had exceeded our downside target at 12,500cps, and was trading along its major support trend-line dated back to September 2013. We expected it to bounce there - but last week it dipped sharply through that trend-line.

With the 3-week RSI mega-oversold, FBR should recover soon. However, a bearish reversal below 12,500cps could see FBR confirm a negative breakout of its primary bull trend below 9,905cps, and  the downside target would be at 7,570cps.

Alternative scenario:

A recovery above 12,500cps would mark a change in sentiment, but a positive breakout of the bear trend would only be confirmed above 13,995cps.

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Moxima

Moxima Gama
Technical Analyst, Sharenet

Moxima has a B.Comm Finance from the University of South Africa and is a certified Chartered Market Technician Level 2, currently completing Level 3. She has been a technical analyst for 10 years, working for BJM, Noah Financial Innovation and for Standard Bank as part of the Research Team in the Treasury Division of CIB. She now runs her own business, The Money Hub, and consults for Sharenet. Moxima has been rated as one of the top 5 technical analysts in South Africa and outperformed the market during the recent recession. She regularly makes an appearance as a guest on CNBC Africa and writes often for Finweek and Sharenet’s Views.

Read an interview with Moxima, or discover Moxima’s trading insights via Sharenet’s Technical Analysis Newsletter.


Disclaimer:
The information contained in this article is for informational purposes only and must not be regarded as a prospectus for any security, financial product or transaction. It is neither to be construed as financial advice nor to be regarded as a definitive analysis of any financial issue. Investors should consider this research/article as only a single factor in making their investment decision. We recommend you consult a financial planner/advisor to take into account your particular investment objectives, financial situation and individual needs. The views and opinions (where expressed) in this article are those of the author and do not necessarily reflect the official policy or position of Sharenet.

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