FNV has reached a key resistance around 158.2FNV has reached a key resistance around 158.2.
There are two factors suggesting a continuation of the upward trend:
Prolonged Sideways Movement: The stock has been trading sideways for an extended period, and this time, the 158.2 level is more likely to be broken.
Robust Upward Momentum: The recent upward move toward the key resistance appears strong and persistent, indicating buying interest.
However, there are some cautionary signs:
Significant YTD Increase: The stock has risen considerably this year, driven by a sharp increase in gold prices.
Historical Return Limits: FNV has almost reached the 70th percentile of its historical returns, suggesting that the potential upside may be limited to around 20% based on past performance.
Resistance-Induced Selling Pressure: Reaching a key resistance level could trigger selling as investors take profits.
Overall Conclusion:
While FNV shows signs of potential upward continuation due to strong momentum and a prolonged consolidation period, the limited upside based on historical returns and the risk of profit-taking at a key resistance level warrant caution. A breakout above 158.2 could signal further gains, but the room for upside may be relatively modest. Monitoring for confirmation before entering new positions or considering partial profit-taking on existing holdings would be a prudent approach.
