Franco Nevada stock (FNV) continues to rally
Last April we noted the leader, FNV would lead the sector, after I bought the wipe out in March.
In September we projected another low upcoming with support and the 62% Fib in view.
Earlier this month we noted the hard bounce from that low at the 62% Fib.
And so here we are, with the precious metals rally pausing for a breath this week while FNV continues to rally. Is it leading again and pointing to better things for the sector? Undetermined as yet, but it is trying to break through a thick resistance level above the 50 day average, so… so far so good at least.
Though I hold FNV after buying near the low, I look at this stock as much as an indicator for the rest of the sector as I do a personal holding. If it can hold the SMA 50 and take out this resistance something may be afoot, assuming the macro plays ball as well.
Then again, being a royalty company, FNV does not necessarily need nearly the macro dynamics in play that the miners (like Huey, pictured above) do. From NFTRH 677…
In the current inflationary macro, royalties (e.g. WPM, FNV, OR, GROY, OGN, RGLD, EMX, MMX, SAND, etc.) are theoretically favored over miners as they do not incur fuel and materials costs, and are also much less labor intensive.
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