F&N collapsed

On the 12th this month I wrote on F&N when there were several brokers and analysts calling it a buy. I then warned of a bearish divergence found at its daily chart. Base on technical analysis a bearish divergence usually mean the stock is about collapse. Fundamentally it usually some big boys are pushing prices to a new high but secretly distributing the stocks to the uninformed.

Today the news broke that F&N has lost their Coca Cola dealership, thus the stock was sold down with huge volume. It lost RM1.15 or 12.8%. The biggest single day loss in its 10 years history.

I would like to pay tribute to technical analysis for preventing someone from buying this stock when it was 'recommended'. Then also it also how nastily evil some of those guys can be.