NFTRH+; A Global Robotics/Machine Tool Play w/ Currency and Seasonal Considerations

Fanuc is a Japanese Machine Tool and Robotics manufacturer that I had a lot of experience with in my old manufacturing days.  As stated in the past when trying to neutralize some Robotics hype associated with Fanuc, it is a machine tool company with a Robotics segment.  It’s also an excellent company, but machine tool trends and currency fluctuations come into play.  This update is a play on FY 2016 Q3 reporting, which should be at the end of this month.  You can access all the financials, complete with easy to follow graphics (necessary if you’re like me) in order to build (or refute) a fundamental case for this stock.

So if past is prologue, general machine tools sales (in the US, including Fanuc) would show a ramp up in December.  Again, note the ‘like clockwork’ bump each December after taking a dip in November.  The most recent reading here is the dip in November.  From EDA Industry Insight…

machine tools

But let’s add another factor to the case.  The last time we exited a relatively strong December (2014) for machine tool sales and the Yen (top panel below) had preceded it with extended weakness, Fanuc went nearly vertical upward.  FANUY is currently at a support area at around 17 and in a potential flag.  This idea has little to do with where the Yen is going (it is near what could be solid support) but much to do with where it has been for the last few months.

I now leave the rest up to your consideration.

yen and fanuc

The parameters are left informal.  I am going to add Fanuc around the current level and see if we can’t get a pop to 22 or 23.  A stop loss below 16 is recommended for anyone seeing fit to try this trade.

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.