FNV has reached a key resistance around 158.2.
There are two factors suggesting a continuation of the upward trend:
Prolonged Sideways Movement: The stock has been trading sideways for an extended period, and this time, the 158.2 level is more likely to be broken.
Robust Upward Momentum: The recent upward move toward the key resistance appears strong and persistent, indicating buying interest.
However, there are some cautionary signs:
Significant YTD Increase: The stock has risen considerably this year, driven by a sharp increase in gold prices.
Historical Return Limits: FNV has almost reached the 70th percentile of its historical returns, suggesting that the potential upside may be limited to around 20% based on past performance.
Resistance-Induced Selling Pressure: Reaching a key resistance level could trigger selling as investors take profits.
Overall Conclusion:
While FNV shows signs of potential upward continuation due to strong momentum and a prolonged consolidation period, the limited upside based on historical returns and the risk of profit-taking at a key resistance level warrant caution. A breakout above 158.2 could signal further gains, but the room for upside may be relatively modest. Monitoring for confirmation before entering new positions or considering partial profit-taking on existing holdings would be a prudent approach.
There are two factors suggesting a continuation of the upward trend:
Prolonged Sideways Movement: The stock has been trading sideways for an extended period, and this time, the 158.2 level is more likely to be broken.
Robust Upward Momentum: The recent upward move toward the key resistance appears strong and persistent, indicating buying interest.
However, there are some cautionary signs:
Significant YTD Increase: The stock has risen considerably this year, driven by a sharp increase in gold prices.
Historical Return Limits: FNV has almost reached the 70th percentile of its historical returns, suggesting that the potential upside may be limited to around 20% based on past performance.
Resistance-Induced Selling Pressure: Reaching a key resistance level could trigger selling as investors take profits.
Overall Conclusion:
While FNV shows signs of potential upward continuation due to strong momentum and a prolonged consolidation period, the limited upside based on historical returns and the risk of profit-taking at a key resistance level warrant caution. A breakout above 158.2 could signal further gains, but the room for upside may be relatively modest. Monitoring for confirmation before entering new positions or considering partial profit-taking on existing holdings would be a prudent approach.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.