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 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
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.
Watch for Resistance Rejection at ₱1.10 and ₱1.45
- If price fails at these levels, expect continued downtrend.
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.
Related Readings
- Micro Stock Trader: Comparing the Modified 10-Step Trading Strategy vs. Retracement Trading Strategy
- Micro Stock Trader Portfolio Tracker Page
