Don't Ignore This Chart!

Fox (FOXA) Pounces On Six Month Highs


21st Century Fox (FOXA) has been creating the news the last few weeks with merger, acquisitions, and parts spinoffs all part of the discussion. It closed the week at six month highs and above an important 5-year support and resistance line. 

With all of this smoke, there must be a little fire behind the scenes, but this resistance area is extremely important for the stock as it has been dead money for years. Last week it made new 52-week lows only to suddenly reverse to 6-month highs. 

If there is real movement behind the scenes this could break the stock out of the funk it has been in. If nothing happens in the M&A or some asset sales, this could fizzle as fast as it started. 

While the SCTR shows the price moving above 75 into a bullish place, will this news change the long-term trend for the stock? It's definitely only a trade as once the 'gains' have been made it will probably be back to sideways. If it doesn't hold this break above the horizontal resistance at $31.50, I'd let someone else own it.

Good trading,
Greg Schnell, CMT, MFTA

Greg Schnell
About the author: , CMT, is a Senior Technical Analyst at specializing in intermarket and commodities analysis. He is also the co-author of Stock Charts For Dummies (Wiley, 2018). Based in Calgary, Greg is a board member of the Canadian Society of Technical Analysts (CSTA) and the chairman of the CSTA Calgary chapter. He is an active member of both the CMT Association and the International Federation of Technical Analysts (IFTA). Learn More
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