Will Fox's Settlement With Dominion Move the Needle on the Stock?

Here's what could open the way for further gains.

Fox Corporation (FOX)  has settled a defamation lawsuit brought by Dominion Voting Systems over the 2020 election results. The civil trial in Delaware Superior Court was set to begin in earnest Tuesday in Wilmington, Delaware before it was settled for $787.5 million.

Let's check out the charts of FOX to see if this could move the needle.

In this daily bar chart of FOX, below, I see a mixed picture. Prices have outlined a possible bottom pattern the past year but the indicators I favor are not confirming the price action. Prices are trading below the cresting 50-day moving average line but above the 200-day line.

The On-Balance-Volume (OBV) line shows a long decline into a March low telling me that sellers of FOX have been more aggressive than buyers for the past year. The Moving Average Convergence Divergence (MACD) oscillator is below the zero line and looks poised to cross to the downside again.

 

In this weekly Japanese candlestick chart of FOX, below, I see a more constructive picture than the daily chart above. Prices trade above the 40-week moving average line. The weekly OBV line shows a rise from October. The MACD oscillator is hugging the zero line.

 

 

In this daily Point and Figure chart of FOX, below, I can see a price target in the $34 area.

 

 

In this weekly Point and Figure chart of FOX, below, I can see the same $34 price target. A weekly trade at $34.27 could open the way to further gains.

 

 

Bottom line strategy: I have no expertise in the law and this case, but the charts are not bearish at this point in time.

 

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