FBR stock prices have taken a huge hit following the news that construction giant Caterpillar Inc. and FBR were terminating the memorandum of understanding between the two companies. Prices are down 74% since all time highs last year and down by 65% in just the last two months. It is unsure exactly why the memorandum was cancelled, but both companies have stated the split up was mutual. This news came not long after FBR unveiled it's 3 day house build using the Hadrian X. The build was a success, but the dealings between the companies are unknown.
Looking at the chart, FBR is looking extremely weak and not yet showing any signs of recovery. Key support levels have been smashed through, and as I type this, price is tightening at the end of a very aggressive falling wedge. Having given up almost all gains since it's 2016 bull run, FBR might be on it's last legs unless it can break upwards and remain within the larger descending channel. Selling pressure currently remains strong, and a continuation downward might have us eventually seeing 2 cent stock prices again. However, if selling slows and price can close above 8.1 cents, a relief rally may be in order - but there is not much time left if this is to be the case.
Looking at the chart, FBR is looking extremely weak and not yet showing any signs of recovery. Key support levels have been smashed through, and as I type this, price is tightening at the end of a very aggressive falling wedge. Having given up almost all gains since it's 2016 bull run, FBR might be on it's last legs unless it can break upwards and remain within the larger descending channel. Selling pressure currently remains strong, and a continuation downward might have us eventually seeing 2 cent stock prices again. However, if selling slows and price can close above 8.1 cents, a relief rally may be in order - but there is not much time left if this is to be the case.