HomeForex UpdatesShould You Buy Franco-Nevada Right Now? • Trading

Should You Buy Franco-Nevada Right Now? • Trading

Franco-Nevada Corporation (NYSE: FNV) stock reached its all-time high of $168 on the eighth of March, after making an inspired charge from its lowest price level of $124 in January.

If you viewed FNV stock from 2022 alone, you might be impressed. But from a broader historical view, this wouldn’t be the first time this stock would make such a move since 2020. In fact, the stock has mostly moved sideways in its entire history.

Source: Zlaťáky

FNV has never looked like one for exciting growth prospects. It has only managed just over 330% in growth since it went public in 2011. But value investors can often rely on the stock to buy-low-sell-high.

So, what’s the outlook for the stock? Is Franco-Nevada a buy right now?

Support and Resistance Levels

Three distinct levels have stood out on the FNV stock so far. Of them, two are supports, and the topmost one is a resistance level. These three levels are distinct because the price has mostly ranged among them since 2020.

Should You Buy Franco-Nevada Right Now 02

The Year 2022, however, has been a great year for the stock. The year started with the stock very close to the lowest of the three levels. It then rose by 35% from the lowest price level of the year to the stock’s all-time high, cutting through the $142.5 – $145.5 resistance level (which is now a support level) in the process.

However, the stock tried to break out of the $161.9 – $165.6 resistance level but fell short. It now rests just underneath the support level.

Is Franco-Nevada Corporation a Buy Right Now?

Desist from buying Franco-Nevada Corporation stock. The technicals don’t look so great, as the stock seems to have bounced off the $161.9 – $165.6 resistance level. The closest support level at $142.5 – $145.5 is now the next likely destination. That’s a 7% downside from the current stock price of $158.

If the stock makes another quick challenge of the resistance level that becomes successful, which is still very possible, we may upgrade our forecast for the stock to a buy. But even then, we would need to re-analyze the market condition to be sure.

For the moment, though, we recommend ‌you hold the FNV stock.



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