Stock of the day: Fox Corporation

Fox continues its bearish streak that began back in February, and the technical landscape provides a clear picture for traders. A textbook head and shoulders pattern has developed on the chart, marked with orange rectangles, and the neckline—highlighted in green—has already been broken. That confirms a sell signal in the mid-term, reinforcing the prevailing negative sentiment.

However, it’s not all over for the buyers just yet. The price recently bounced off a key long-term uptrend line, drawn in red, which has been in play since 2020. This line currently acts as the last line of defense for bulls. As long as we remain above this red support, there’s still hope for a reversal or consolidation.

From a trading perspective, the setup is clean and defined. A daily close below the red support would trigger a strong continuation sell signal. On the flip side, a break above the green neckline would invalidate the bearish setup and offer an early signal to go long.

Let’s see which way the breakout lands.

Source: https://www.axiory.com/analytics/stock-of-the-day/stock-of-the-day-fox-corporation