F&N

F&N: is +0.8% at $6.46, pausing its recent slide. The stock has bounced off nicely from the ~$6.40 support, with the fast Stochastic hinting of a positive crossover of the slow Stochastic. Traders looking to “play the bounce”, may see resistance at $6.60, with support at $6.40. Strict cut loss if stock closes below support. The medium term technical outlook isn’t very clear now that the positive trend channel (Aug ’11 – Apr ’12) is broken. RSI is still some distance from being oversold, hence it is hard to be sure if price has hit a bottom. A dip below the recent $6.375 low could signal further price weakness toward the 200day MA ($6.28).