Franco-Nevada Corporation : Bearish trend should continue
Entry price | Target | Stop-loss | Potential |
---|
CA$37.78 |
CA$0 |
CA$40.56 |
+100% |
---|
Due to the bearish trend, the target price is fixed at CAD 33.6 for Franco-Nevada.
The fundamental situation of the company remains fragile. Currently, the company is trading 10.4 times its sales, which is still a significant valuation for the company.
Graphically, we can see that the stock is in a bearish trend with decreasing moving averages, which serve as slant resistance. The security is moving towards CAD 33.6 in daily data, the next support area.
Therefore, we could take a short position to benefit from the downward trend. The security could quickly go toward the next support area located at CAD 33.6. A stop loss will be placed above the 38.6 resistance. If this threshold is crossed, this bearish strategy will be cancelled.
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