Negative Outlook For Foster’s, Wizard Reports

This story features FRUGL GROUP LIMITED. For more info SHARE ANALYSIS: FGL

By Rudi Filapek-Vandyck

Foster's ((FGL)) shares feature on various stockbrokers' Top Stocks lists for the year ahead -such as at BA-Merrill Lynch, for example- but the TechWizard remains undeterred in his view: more weakness is to be expected.

The TechWizard observes the shares have failed to break above the top Bollinger band and they now seem destined to test the lower Bollinger band. Add the fact that the stochastic is just about to cross and head south and what we are left with is a clear negative picture, he says.

Note the TechWizard does not include the MACD indicator in his analysis of Foster's shares as the stock has effectively moved sideways since August last year. MACD and sideways price action don't go well together, he says.

In case of a non-trending stock, such as Foster's, the Wizard's experience has taught him it's much better to use the stochastic. In this case, the stochastic paints a negative outlook.

The Wizard reports he is currently not a shareholder in the company.

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