One is a leadership breakout play in the form of quality royalty company Franco Nevada (FNV) noted for its imminent attempt at the trend line in an NFTRH Update early last week…
FNV weekly, from an NFTRH Update on Feb. 4 (password protected)
And the other is a bottoming formation in Agnico Eagle (AEM), which was noted in an Update on January 17.
Franco Nevada (FNV) is described as one of the best (if not the best) run precious metals royalty plays by people who seem to know their stuff, fundamentally. What I see is a quality royalty company that is above resistance (now support, green line) and at a critical trend line (blue), that was the former uptrend line out of the 2008 market liquidation.
I also see a zero + (green) MACD on this weekly chart. While many gold stocks have green MACD’s on daily charts, this weekly view is much more significant. Because technically at least, if FNV can hold above resistance and get above the blue line, it would be in a new cyclical bull market.
A lot of people hate charts because they do not predict anything and sometimes the chartist can come off more like a carnival sideshow barker than a serious market analyst. All those calls, warnings and targets… only to be wrong and have to revise, as if by magic.
But one thing charts can do is set very real parameters and rules. The new NFTRH key ETF chart service (added to the premium service at no extra charge) is purposely mechanical and rules based. It has been saying stock markets remain on bull signals and precious metals and commodities remain on bear signals. In a difficult market there is something to be said for rules.
Royalty company Franco-Nevada (one I would consider a ‘quality’ item) did big volume on Friday and even put in a Hammer. Was that capitulation and opportunistic buying? Not sure. It has not even Fib’d 62% yet. But stocks like this are something to keep an eye on.
Franco-Nevada Daily Chart