Analysts have spotted a possible bearish inside day candle pattern in Fabrinet (NYSE:FN) based on the price action in the company's shares. Yesterday's price range of $16.29 and $16.58 is within the prior day's high and low of the day. This trading action often signifies indecision by bulls and bears to drive prices higher or lower and often implies a possible change in trend. Owners of Fabrinet may want to consider a possible hedge in the event a pullback occurs. Look for confirmation in the next few trading days.
Fabrinet offers outsourced process engineering and manufacturing services. The Company contracts to manufacture optical communications, automotive, industrial, and imaging components, sub-assemblies, and modules for its original equipment manufacturer customers.
There is potential upside of 4.8% for shares of Fabrinet based on a current price of $16.41 and an average consensus analyst price target of $17.20. The stock should find initial support at its 50-day moving average (MA) of $14.28 and further support at its 200-day MA of $12.36.
In the past 52 weeks, Fabrinet share prices have been bracketed by a low of $9.25 and a high of $19.54 and closed yesterday at $16.41, 77% above that low price. Over the past week, the 200-day moving average (MA) has gone up 0.4% while the 50-day MA has advanced 2.5%.
