$FNI: What Does The Chart Tell Us?

$FNI: What Does The Chart Tell Us?

$FNI as of 15 April 2016 closed at 0.88.  In a bigger time-frame, the stock forms a descending triangle.


“The descending triangle is a bearish formation that usually forms during a downtrend as a continuation pattern. There are instances when descending triangles form as reversal patterns at the end of an uptrend, but they are typically continuation patterns. Regardless of where they form, descending triangles are bearish patterns that indicate distribution.” (source: www.stockchart.com)

If this is not a valid descending triangle, the price action if there is a catalyst may breakout the strong trendline as drawn above in the arrow.  If you have noticed, the stock was a pull and push between the bear and the bull from 0.87 to 0.91.  Based on actual traded prices, 0.88, 0.89 and 0.90 are also resistance levels.

Based on the longer time-frame, the major resistance level move towards 0.91 and 0.93 which need a strong breakout by the bulls.  If the trend is too strong, there is a strong support at around 0.74.  If this is a continuation pattern, just watch out of the support area at 0.87, 0.85 and 0.80.

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