The descending trend line has been breached today following the sideways action seen over the last two weeks. A daily close above 1600 would open up upside towards 1738 (which is a double top neckline seen in Aug 2016.
FRES looks to be ion a longer term pattern that suggests that we should be looking to see a move back into the low £20.00 on a longer term field.
I would be a buyer of pull backs here and want to watch for multidigonal patterns on the precious metals and indices to look for shorter term trading opportunities within this implied bull run.
Fresnillo is down 3.61% today and is a top FTSE100 loser.
The daily chart shows –
• Double top breakdown
• Money flow index approaching oversold region for the first time since November 2015
• RSI is approaching oversold region for the first time since July 2015
Overall, prices appear on track to test 1500 levels (100-DMA), although a minor pull back once...
Fresnillo, the precious metals miner, is the top loser in the FTSE100 index; down 5.42% at the time of writing.
Pattern – Double top on daily with neckline at 1738
Sliding daily RSI and money flow index coupled with a sharp drop today suggests prices are likely to test the neckline support at 1738 levels.
A day end close below neckline would signal trend...
