FNV unable to break through key resistance level
Franco-Nevada Corporation (FNV) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
FNV ended the month 14.47% higher at 159.85 after gaining $2.32 (1.47%) today on low volume, outperforming the S&P 500 (0.77%). Trading up to $1.16 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on July 24th, FNV gained 3.04% on the following trading day. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (FNV as at Jul 31, 2020):
Friday's trading range has been $2.19 (1.37%), that's far below the last trading month's daily average range of $4.16. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for FNV.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, one bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
Unable to break through the key technical resistance level at 159.92 (R1), Franco-Nevada closed below it after spiking up to 160.49 earlier during the day. The failure to close above the resistance might increase that levels importance going forward. After having been unable to move above 160.50 in the prior session, the market ran into sellers again around the same price level today, failing to move higher than 160.49.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling could accelerate should prices move below the close-by swing low at 155.14 where further sell stops might get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Resistance R1" stand out. Its common bearish interpretation has been confirmed for Franco-Nevada. Out of 425 times, FNV closed lower 53.18% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after two trading days, showing a win rate of 52.94% with an average market move of -0.12%.