Well, here is Mr. Inverted H&S showing up again. We had something similar in BEN last week, something similar potentially on RUT/IWM… indexes, stocks, US, global… these bounce patterns seem to be popping up everywhere.
A little history for those who do not know. First of all, I am a former manufacturing guy and I have a long history with this quality machine tool company. Last summer, even as Fanuc was getting hyped for its Robotics component in some quarters we noted that it’s a machine tool company first and foremost and also that my source indicated some bad stuff was just around the corner in machine tools (Mori Seiki’s inventory blow out). We took the warning, noted here the bad financial results and forecast from Fanuc and now here we are with a bombed out stock, hype unwound and a bottoming pattern. Note however, that machine tool sales in the US were not getting any better as of September.
But NFTRH+ is a chart thing, so here goes. Quite simply, as long as FANUY stays above 29 it targets 33.
The weekly chart shows that FANUY declined from the hype bubble down to what could reasonably be called long-term support.
FANUY does not get a lot of volume, so I do not recommend it as a highly liquid or dynamic trade. There are lots of trades out there like that now. It would be more suitable for someone who wants to patiently trade for a bounce or more, or even invest longer-term. It’s a quality machine tool company with an interesting robotics side. A weak Yen would help its cause, so the state of the Yen is a factor too.
Buy Target: 29 to 29.50
Sell Target: 33
Stop Loss: Below 28.50 (strict), below 27.50 (more lenient)
A reminder that chart based NFTRH+ updates are technical trade setup ideas, which may not be revisited as the buy, sell, stop parameters are already noted. They are meant as a starting point for further research if interested. I will not personally buy every item highlighted and will sometimes sell – without prior notice (because this takes time and resource away from NFTRH’s main functions) – any item that I do buy, below target, which is something I often do as a trader. Also please be aware that I am not a fundamental stock analyst. Due diligence is your responsibility.