In terms of earnings Monday, Jim Cramer said during his Mad Money program Friday night he will be looking at the numbers for Franco-Nevada (FNV) as the price of gold has soared in recent weeks. Let's check out the charts of this precious metal play.
In the daily bar chart of FNV, below, we can see that prices have been strong since late April. More recently prices corrected to the downside to test the rising 50-day moving average line. Trading volume surged on the decline suggesting that aggressive traders used the dip to increase their long exposure.
The daily On-Balance-Volume (OBV) line has been strong the past year and is close to making a new high for the move up. The Moving Average Convergence Divergence (MACD) oscillator is poised to cross to the upside for a fresh outright go long signal.
In the weekly bar chart of FNV, below, we can see that prices made a long base pattern in 2017 and 2018 before the more recent upside move. Prices are firmly above the rising 40-week moving average line.
The weekly OBV line has been strong from May 2019 and the MACD oscillator is in a bullish configuration.
In this daily Point and Figure chart of FNV, below, we can see that the software has projected a potential upside price target in the $135 area.
Bottom-line strategy: You may see very few buy recommendations from analysts today but FNV is one of them. Risk a close below $110 and try to go long close to Friday's close if available. The $135 area is our initial price target for now.
