News that Twenty First Century Fox CEO Rupert Murdoch will be stepping down from his post and handing the reins over to his son drove FOX shares lower last week, allowing prices to hit the bottom of the range. The stock ahs been trading between support at $32.50/share and resistance at $34.50/share.
The short-term 100 SMA is starting to cross below the longer-term 200 SMA, hinting that further losses are possible. However, stochastic is starting to climb out of the oversold region already, which might be a sign that a bounce could take place. If so, FOX shares could make their way back to the top of the range once more.
RSI is still pointing down, suggesting that a dip lower is possible. If a downside break occurs, price could be in for a much longer-term decline until probably the $30/share support level.
FOX Shares Forecast
Reports that sibling rivalry could come in play after the 84-year old Murdoch announced that the next in line to his CEO spot would not be his eldest son. James Murdoch, the 42-year-old second son, would take over as CEO of Twenty-First Century Fox, bypassing 43-year-old first son Lachlan in the line of succession.
James joined News Corp at the age of 23 and ever since has been active in its affairs. He handled News Corp.’s Asian operations from 2000-2003 and then served as the CEO of BskyB. However, the infamous phone hacking scandal that rocked News Corp UK, put a black mark on his resume. Lachlan, too, had stepped aside to build his business in Australia, only to return sometime back. Lachlan is widely discredited for the company’s botched investment in Australia’s One.Tel.
Investors are still wary how the younger Murdoch might shake things up in the company, leading some to liquidate their previous long positions and triggering a drop in stock prices earlier on. Should the new leadership show a strong strategy for the company moving forward, share prices could regain ground again.
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