Conclusion, Investment Implications, Strategy
Focus Financial Partners Inc. (FOCS) is amid favorable conditions to resume its May 2020 Strategic advance from major underlying support near $40.96, which is currently being tested. A sustained rise above this area would target an additional 16% rise to $50.00 per share.
Analysis and Rationale
Focus Financial Partners Inc. (FOCS) provides wealth management services to primarily ultra-high and high net worth individuals, families, and business entities. Its wealth management services include investment advice, financial and tax planning, consulting, tax return preparation, family office services, and other services. The company also offers recordkeeping and administration services; recommends financial products through commissions and distribution fees; and sells investment or insurance products. The company was founded in 2006 and is headquartered in New York, New York.
The rightmost green highlights in Chart 1 below show that FOCS is testing major underlying support at its 200-day moving average, currently at $40.96 while hovering at monthly (our Tactical time period) oversold extremes. The other green highlights show that a previous similar oversold extreme in September 2020 helped trigger the resumption of the stock’s October 2020 major uptrend as defined by the 200-day MA and led into a large, sustained advance. These conditions set up a low-risk buying opportunity because, If that major uptrend is still valid, this is where it should resume.
A sustained rise above the $40.96 area would indicate this is indeed the case and would target an additional 16% rise to $50.00 per share.
Table 1 below shows that considering the aforementioned upside target and a protective stop placed below the $40.93 area, a long entry price of $43.02 would provide a 1:3.3 risk/reward ratio (risking $1.00 to make $3.30) with an initial risk of 4.9%.
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