Price shot up on a profit release this week and sits above the target noted in the original analysis. FBU trends quite well when in an uptrend and anyone looking for a medium to long-term trade using Trendline Trading as I suggest in my educational material could do worse than follow FBU. However, after such a steep rally it wouldn't be suprising to see price fall back a little.

3 November 2020

Supposedly NZ's largest listed company, FBU has lost over 70% of its value since 2016 - so hardly a stellar performer. However, the chart has a potential tradeable pattern with price having tested a resistance level twice and likely to break higher. It is coming of a low (probably the end of it's price cycle - Wave C). Price is in a technical uptrend and has been so for over 12 months as the Covid fall wasn't long enough to be called a downtrend. It has made a higher trough and made higher prices for 8 weeks in a row (last 2 weeks have been lower and this week is again higher with price having risen over 6% in 2 days. Price is currently 1 cent below making a higher peak. Someone I do some work for is in the construction finance business and is back in NZ for a few weeks. He said the property market is absolutely booming in NZ something else that is positive for FBU going forward. Anyway, I've entered a trade today (on the basis it is a better bet than the Melbourne Cup) with a target of $4.90

FBU 3Nov2020

Contact

Robert Norman

Phone: 0428 346 951
Email: robert@sharecharting.com.au

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