FRES Support lineFresnillo resting at support. If support holds, this is a good buy zone in my opinion
Fresnillo
Fresnillo is closing-in on a major breakoutThe descending trend line has been breached today following the sideways action seen over the last two weeks. A daily close above 1600 would open up upside towards 1738 (which is a double top neckline seen in Aug 2016.
Fresnillo – Double top breakdownFresnillo is down 3.61% today and is a top FTSE100 loser.
The daily chart shows –
• Double top breakdown
• Money flow index approaching oversold region for the first time since November 2015
• RSI is approaching oversold region for the first time since July 2015
Overall, prices appear on track to test 1500 levels (100-DMA), although a minor pull back once indicators hit oversold territory cannot be ruled out.
Bearish invalidation is seen only once prices see a daily close above neckline level of 1738 levels.
Fresnillo – Double top on daily chartFresnillo, the precious metals miner, is the top loser in the FTSE100 index; down 5.42% at the time of writing.
Pattern – Double top on daily with neckline at 1738
Sliding daily RSI and money flow index coupled with a sharp drop today suggests prices are likely to test the neckline support at 1738 levels.
A day end close below neckline would signal trend reversal on larger scheme of things and open doors for a drop to 1400 (100-DMA) levels.
