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Famous-Brands-technical-analysis

Daily Analysis – Famous Brands

Today’s stock was picked up by 2 of my custom stock screeners, The Bill Williams Fractal Breakout and my Explosive Stock Screener. Its been a while since I have seen the same stock picked up by 2 screeners.

The question is oops what happened here?
The release of Famous Brands SENS statement today must have been the cause after showing losses after the purchase of the UKS’s Gourmet Burger Kitchen, in September 2016 and both the EPS and HEPS down by 17% to 25%.

Today the price smashed below two major support areas at  14,276 and 13,950. The next target is the trend support level at 13,260. Should that support be broken we could see the price falling to the next major support level at 11,000.

Should the 13,260 area hold we could go back to the 14,400 levels but its going to take a major confidence boost to get this price back to decent levels. Due to the 50 Day MA being below the 200 Day MA, I think we could be in for a bear trend for the next few weeks.

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*All information in this article is the author’s opinion and is for educational purposes only. It does not constitute investment advice or a solicitation to buy or sell any financial instrument. Trading may expose you to risk of loss greater than your deposits and is only suitable for experienced investors who have sufficient financial means to bear such risk.

 

Stanton Roux

Stanton Roux

Algotrading.co.za is a free online learning platform that merges my two passions software and trading. I like to bring a new twist to trading and show how software can improve your trading skills.