FBR overall Short Bias but Potential Bullish H&S formimg
Updated
This is my first chart ever so definitely not advice
Overall I have a short bias due on this stock at the moment with a continuation of the downtrend. On the contrary: It is historically cheap, so the H&S could be a contending reversal at this point...
Should be watched closely for confirmation to see which way it could play out
Fundamentals (Negative)
- No long term revenue
- Burning cash
- No progression for 6-9 months
- Lack of SH confidence
- CR required inside 6-9 months
- Government will likely drop the R&D rebate incentives due to Covid-19
Fundamentals (Positive)
- Heavily sold
- Recent reduction of cash burn
- currently sitting near IPO baseline
- Market Cap is very low
Technical Analysis: Short play
- Descending Tangle showing strong potential to break downward out for a small short position
- Could potentially re enter for a short position if it comes up to test the breakout of the descending triangle
Technical Analysis: Long play
- If the head and shoulders form and the trendline & neckline is broken, we could see a good sized run up to the previous high
Overall I have a short bias due on this stock at the moment with a continuation of the downtrend. On the contrary: It is historically cheap, so the H&S could be a contending reversal at this point...
Should be watched closely for confirmation to see which way it could play out
Fundamentals (Negative)
- No long term revenue
- Burning cash
- No progression for 6-9 months
- Lack of SH confidence
- CR required inside 6-9 months
- Government will likely drop the R&D rebate incentives due to Covid-19
Fundamentals (Positive)
- Heavily sold
- Recent reduction of cash burn
- currently sitting near IPO baseline
- Market Cap is very low
Technical Analysis: Short play
- Descending Tangle showing strong potential to break downward out for a small short position
- Could potentially re enter for a short position if it comes up to test the breakout of the descending triangle
Technical Analysis: Long play
- If the head and shoulders form and the trendline & neckline is broken, we could see a good sized run up to the previous high
Note
Chart Update, its looking less likely that the H&S will play out for a bull run. My overall opinion is bearish until the IPO floor is reached for a potential short term pull back. still quite early & only just broken. The lower bollinger band is at 2.65 cents but if closes below this then it will likely push down with more confidence/agressively.FBR has closed below decending triangle which is a bearish signal, could come back for a retest of the decending triangle
XJO has broken down below on Bearish Rising Wedge, potentially a turing point for the recent bullish run on ASX.
FBR has been tracking XJO , not perfectly but overall sentiment has been on par so if XJO drops, good chance FBR will follow
AIMO
Note
FBR has tested the IPO floor at 2.1 cents and initial support was strong. Its now looking to retest the Flat Bottom Trendline on the Decending Triangle at 2.8 cents. The previous support at this price would make for a decent resistance now.
Fundamentally & Technically, i still feel like this is properly stuvk inside the downtrend.
FBR really needs a positive catalyst to start uptrend which at this point is less likely than a capital raise.
Note
FBR retraced back up to test the flat bottom trendline on the decending triangle which is common on decendinding triangles. It actually managed to breach the decending triangle but was rejected a pip or 2 above at the center trendline in the downward channel. Next stip downward will likely see some support at 2/2.1 cents which i believe will be broken after a few tests.
Theres also a gap around 1.8 to 1.9 cents on the 4hr chart which will could be a strong attraction for the 1st breach of the 2 cent support.
After 2 cents is broken, 1 cent is my next target
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