Chart of the Day: Could the FatFish (ASX:FFG) spike seen in February happen again?
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Now this is a chart.
After spending the bulk of 2020 bubbling away in relative anonymity, Fatfish (ASX:FFG) foreshadowed some speculative interest in October, and then really got going on the 11th of February 2021.
That move resulted in four significant up days, massive gaps on the chart on days 3 and 4, and ultimately a simply enormous reversal candle on day 5 on the 16th of Feb, when the price hit an intra-day high of 43c.
As the name implies, reversal candles frequently imply lower levels to come, and the same was true in this instance, as the bulk of subsequent price action to date has been to lower levels, seeing the stock hit supports in the order of 10c a couple of times in recent sessions.
Fatfish has popped up on some scans today for the fact that it is threatening to leave some of those recent lows behind, finishing the day at 13c, which is good for +13.43% on the day.
If you’re wondering why there is no explicit reference to the nature of the business run by Fatfish Group contained in today’s note, that’s no accident.
Suffice to say that they’re a colourful outfit involved in some very topical endeavours which may or many not be of particular interest to the more speculative corners of the market.
We’re not there at the moment, but that doesn’t mean that it’s not a wonderful trading stock.
When any equity shows the capacity to put up moves like the one observed in the month of February, consolidations like the one that has followed should be monitored for the possibility that it can all happen again.
Steve Collette of Collette Capital Pty Ltd (ABN 56645766507) is a Corporate Authorised Representative (No. 1284431) of Sanlam Private Wealth (AFS License No. 337927), which only provides general advice.
Collette Capital only makes services available to professional and sophisticated investors as defined by the Corporations Act, Section (s)708(8)C and 761G(7)C.
Learn more at www.collette.capital.
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