Franco Nevada Corp Is Bouncing, But Traders Should Watch This Level

President & CEO Chief Market Strategist at IntheMoneyStocks.com • Nov 25, 2020 at 2:12 PM EST

Traders should now watch the $119.00 level for major chart support. This key support area is where the stock broke out on April 13th, 2020.

Today, leading gold-focused royalty and stream company, Franco-Nevada Corporation (FNV), is bouncing from an oversold condition on the charts. This equity topped out on August 5th, 2020 at $166.11 a share. Since that high pivot, the shares have steadily declined and now trades around $128.50 a share. Traders should note that the stock has broken below its important 50 and 200-day moving averages. This puts the stock in a weak technical position on the charts and usually indicates lower prices ahead.

Traders should now watch the $119.00 level for major chart support. This key support area is where the stock broke out on April 13th, 2020. Often, stocks will be defended by the institutional crowd around prior breakout levels. This should be the case with Franco Nevada Corp (FNV) stock at this key support area.

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