Franco Nevada (FNV) to Break Consolidation?

When updating the NFTRH Trade Log I sometimes add a little detail about the whats and whys. In this case I want to put up a chart for subscribers (public welcome to consider or discard as you wish). Buying any gold stock is a bit of a risk on a day like today because Trump is threatening missiles and one way to lose money is to buy the gold sector amid geopolitical political tensions.

But a breakout is a breakout and FNV has departed its downtrend channel and is at key short-term resistance at the SMA 50. A hold above the SMA 50 would set it on its way. A hold below it means that the trend line broke and nothing more. A trend line break is not worth what the hype thinks it is.

MACD, RSI and AROON are red but ADX has flattened out its downtrend and +DI is creeping above -DI. The safest bet for a would-be FNV bull would be to wait to see if it establishes support at 71.

fnv

The weekly chart shows everything negative, from MACD to RSI to AROON to ADX. It also shows that the downtrend of the last few months has been a leg down in a series of higher highs and higher lows. No telling whether this is the bottom of that leg or not, but as it rests at clear support it could be.

fnv

FNV is a royalty/streamer with a higher content of non gold/silver related assets in its portfolio. So it’s a more diversified play on the cyclical/counter-cyclical question. Anyway, I added it to my precious metals holdings but be aware of the caveats noted above.

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