Global Ferronickel Holdings Inc. (FNI) October 2016

I’ve never been a fan of mining stocks due to their extremely volatile nature. However, I could tell that FNI is something worth adding to the watchlist due to recent events in the mining industry.

DENR’s mining audits has caused nickel shipments cut by 30%. We expect this to pump nickel prices further up. As shown below, nickel is on an ascending triangle which is about to break out of 23.6% fibonacci retracement level.

nickel-20161021

 

Chart observations

October 22, 2016:

-Reversal after capitulation
-Increased volume during breakout: bull are in control
-50MA x 100MA
-RSI: Oversold. Possible pullback in the near term.
-ADX: trending

fni-20161021

Note: Does anyone know what that reversal pattern is called? please let me know! 😀

Warning: Caveat. This is a very speculative stock and price action can be triggered by news. It doesn’t help too that the company is on a net loss for the first half of 2016.

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