Although it is only been a relatively brief stint for shares of FairFX on the stock market, it can be seen from the daily chart that so far things have been disproportionately eventful, at least from a price action perspective.
This is said in the wake of the initial August -September rally where the shares effectively doubled before the inevitable consolidation came in. It can be argued that the consolidation continued until the middle of this month, most likely within a rising trend channel based towards the 10 day moving average currently at 52p. The point to note in addition to this is the way that January support to date at 49p came in above the initial August resistance 48p, with the general message being that when new support comes in above old resistance you are generally looking at a constructive or very constructive picture.
Therefore, it seems safe to say that FairFX shares are about to begin a new bullish phase in the wake of the brief bear trap below the 50p level, with the view now that a decent weekly close above the August price channel floor should be enough to kick start a minimum attempt at retesting the best levels of last year towards 80p.
At this stage only cautious traders would wait on an end of day close back above the 50 day moving average at 58p as a momentum buy trigger, even though the RSI breaking above neutral 50 to stand at 54 should be a leading indicator on the upside. The timeframe for the move towards 80p is seen as being as soon as the next 4 to 6 weeks.
