Sunday, January 26, 2025

Global Ferronickel Holdings Inc. (FNI) Daily Chart Analysis – January 24, 2025

Contents:

  • Introduction
  • Trade Details
  • Hybrid 10-Step Trading Strategy Review
  • Final Trade Assessment
  • Next Steps

Introduction

This analysis evaluates the daily chart of Global Ferronickel Holdings Inc. (FNI) as of January 24, 2025, using the Hybrid 10-Step Trading Strategy. The evaluation focuses on price action, market trend, key support and resistance levels, and potential trade opportunities.

FNI Daily Chart showing 20-MA, 200-MA, key resistance levels, and retracement pullbacks

FNI Daily Chart Analysis – Buy or Sell Decision with Updated Moving Averages


Trade Details

  • Stock Name and Ticker: Global Ferronickel Holdings Inc. (FNI)
  • Timeframe: Daily Chart
  • Market Trend: Downtrend (Below 20-MA and 200-MA)
  • Price Position: Below 20-MA and 200-MA, indicating bearish bias
    • Below the 200-MA (₱1.48) → Long-term bearish confirmation
    • At the 20-MA (₱1.02) → Short-term trend resistance
  • Significant Support & Resistance Levels:
    • Support: ₱0.90 (0% Pullback Level)
    • Resistance Levels:
      • ₱1.02 (20-MA) – Short-term barrier
      • ₱1.45 (50% Bullish Reversal Pullback) – Strong mid-range resistance
      • ₱1.72 (75% Bullish Reversal Pullback) – High-level resistance
      • ₱1.99 (100% Pullback) – Full retracement level

Hybrid 10-Step Trading Strategy Review

Step 1: Identify Market State & Trend Context

  • FNI remains in a strong downtrend, as the 200-MA at ₱1.48 acts as long-term resistance.
  • The stock bounced off the ₱0.90 support level but is now facing resistance at ₱1.02 (20-MA).

Step 2: Assess Price Position & Retracement Levels

  • FNI is trading between the 20-MA and its support at ₱0.90, meaning price action is indecisive.
  • The failure to break above ₱1.02 (20-MA) could signal another decline.

Step 3: Identify Power Bars & Retracement Strength

  • The recent green candle (+2.00%) lacks strong volume, suggesting weak bullish conviction.
  • The previous failed breakout near ₱1.10 reinforces the bearish sentiment.

Step 4: Entry with Confirmation from Both Strategies

  • Buyers: A breakout above ₱1.02 (20-MA) could lead to ₱1.10–₱1.20 short-term targets.
  • Sellers: A rejection at ₱1.02 or ₱1.10 confirms further downside.

Step 5: Tactical Stop-Loss Adjustments

  • Bullish traders: Stop-loss below ₱0.88 (below support).
  • Bearish traders: Stop-loss above ₱1.10 (above minor resistance).

Step 6: Color Change as a Secondary Confirmation

  • A bullish confirmation requires a strong breakout above ₱1.02 and ₱1.10 with volume.
  • Failure to close above ₱1.02 will reinforce the bearish bias.

Step 7: Profit-Taking Aligned with Retracement Targets

  • If a bullish breakout occurs, take profits near ₱1.45.
  • If bearish rejection happens, ₱0.90 remains the target for a retest.

Step 8: Re-Entry at Secondary Retracement Pullbacks

  • Bullish traders can re-enter on a successful retest of ₱1.02 as support.
  • Bearish traders can short near ₱1.10 or ₱1.45 if resistance holds.

Step 9: Tactical Position Management

  • Monitor 20-MA and 200-MA as trend indicators.
  • Only hold long positions if price stays above ₱1.02.

Step 10: Counter-Trend Trades Only When Retracement Fails

  • Short opportunities exist at ₱1.10 and ₱1.45 if rejection occurs.
  • Bullish reversal only confirmed if price moves above ₱1.48 (200-MA).

Final Trade Assessment

  • Bias: Still bearish unless price sustains above ₱1.02 and ₱1.10.
  • Best Play for Bulls: Wait for a confirmed breakout above ₱1.10 with volume.
  • Best Play for Bears: Short near ₱1.02 or ₱1.10 with a target of ₱0.90.

Next Steps

  1. Monitor Price Action at the 20-MA (₱1.02)

    • A strong close above ₱1.02 could indicate early reversal.
    • A rejection will likely send price back to ₱0.90.

  2. Watch for Resistance Rejection at ₱1.10 and ₱1.45

    • If price fails at these levels, expect continued downtrend.

  3. Adjust Trading Strategy Accordingly

    • Long trades only above ₱1.10.
    • Short positions valid below ₱1.02.


Disclaimer: This post is for informational purposes only and should not be considered financial advice. Always do your own research before making any trading decisions.


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