F&N – Bullish signal

Trend: Uptrend, 20ma up, Macd above 0

Support: 5.50 (20ma), 5.26 (50ma close)

Resistance: 5.83, 6.01

Observations
Candlestick – Bullish Harami Cross.
Histogram – 4Rs. No Bearish divergence is seen.
RSI – Around 50%. No Bearish divergence is seen.
Stochastic –Bullish crossover.
Bollinger Band – Closer to Mid band.

Conclusion:
A follow up on last week’s posting on F&N. Currently. F&N is trading at 20ma and is starting to show signs of a support being formed. Looking at the candlestick, it triggered a bullish harami pattern. Stochastic has even triggered a bullish cross. Hence, as discussed on the previous chart, we have to wait for a bullish signal before we plan to enter the long trade.
In conclusion, the final decision is to establish our ESP levels and position sizing so that we can wait for the right moment to enter.
What to watch out for this week:
1) Confirmation of bullish signal.

Trading strategy to adapt right now:
- Enter long when there is confirmation for our ESP.

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