Fonterra Shareholders Fund (FSF.NZX)

31 August 2018

Technical Summary: Its a really scrappy looking 5 year chart for holders of FSF. The chart is punctuated by significant volatility of 7.5 the level not expected from a company in a primary industry. When we turn to the 1 year chart we see a price that is in a textbook downtrend. It has put in a series of lower lows and rallies to the 50 day moving average have been cut short. It is interested to note that the 50 day moving average is starting to level off. If this continues then it will provide some respite from the downtrend but at this stage it is too early to tell. From a technical perspective there is no reason to buy against the trend here. Those that are looking at 5.5 the fundamentals may want to wait until the downtrend ends in hope for a cheaper price.

Textbook downtrend for holders of FSF

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