Fandom Sports Media (FDM.CN) had a great week, and is expected to continue its surge backed by the large interest in Non-Fungible Tokens (NFTs). Fandom saw a 9.37% pop with 1.54 million shares traded on Thursday, followed by a rocket ship surge of 45.71% with 5.3 million shares traded on Friday. A move close to 55% to end off the week.
And we are starting the week where we left off. At time of writing, Fandom is at $0.60 with 1.8 million shares traded. We are still within the first hour of trading.
Market Moment readers will be familiar with Fandom. It was covered, and met my Market Structure criteria back in Mid December of 2020. This was our entry:
That’s right. We entered on the retest of the breakout near $0.145. If you took the trade, you would be up around 500%.
If you like technicals like I do (I mean come on who doesn’t?), wait until you see the current set up.
Fandom is an entertainment company that has developed proprietary gaming and micro-services platform for esports. From their home page:
“Fandom Sports Media is deploying a web application which instantly operates on Android and iOS mobile devices targeting Esports Super Fans. The Company’s proprietary Unified Information Access platform is active in a private cloud with multilingual support and is targeted towards a global launch of the Fandom’s regulated betting and unregulated Esports prediction fan engagement models. Fandom supplies interactive Esports entertainment to Super Fans through purpose-built data interaction.”
Esports is what comes to mind, and yes, this is a hot sector with the upcoming catalyst being Bill C-218 which would legalize betting on individual sports events. However, the financial world and financial media is hot over one thing right now: NFTs.
What is a Non-fungible Token? Check out the video below, or check out Madelyn Grace’s Investor Education pieces on all things related to NFT:
NFTs really are the talk of the street. We have seen big names like Mark Cuban, and Logan Paul make millions off of NFTs. The NBA is getting involved. Musicians are getting involved (Our Lady Peace, Kings of Leon to name just a few). We have even seen a digital artwork created by artist Beeple sell for nearly $ 70 million USD!
It is debatable whether this is just hype (the latest crypto craze as they call it), or whether NFTs will play a larger part in the world and finance going forward. What is for certain is that NFTs will likely be the front and center of attention for sometime, as more larger names and organizations pile in.
Fandom has spiked on NFT interest.
Our very own Joseph Morton wrote about Fandom diversifying their engagement options with NFTs earlier this year.
Joseph reported that Fandom has started the necessary research and development required to mining non-fungible tokens (NFT’s) to better reward e-sports fans for their engagement on Fandom’s all ages prediction platform.
NFTs will represent in-game assets and the user will be in complete control of how they’re used. They will give fans full ownership of their in-game rewards as well as exclusive items and giveaways. This gives access to trading on third-party marketplaces without permission from the game developer, ostensibly taking them outside of the realm of game-token and into category of crypto-collectible.
The company contends that this advance will drive a multi-million dollar revenue engagement on their prediction platform, increase user engagement and expose their customers to more in-app offerings.
With the fundamental back drop out of the way. Let’s get to the charts. Oh boy is this exciting! Right off the beat, I want to give a zoomed out perspective on Fandom. I want to show my readers the weekly chart.
Do you see it? One of our favorite reversal patterns, the double bottom pattern.
This could only just be the beginning of a larger move to the upside.
This week will be huge for Fandom. As long as price closes above $0.50 by the end of trading on Friday, the double bottom pattern holds. I put out the argument that this has already broken out and the pattern triggered with last weeks close. The members of our Discord Trading Room (link available with the social media icons) were notified about this last week.
Going down to the daily chart, and you will see how major this $0.50 zone is. It was previous resistance (price ceiling) which has become current support (price floor).
Going back to the weekly chart, $1.00 is the next major resistance zone. Or what I call a flip zone. Which is an area that has been BOTH support and resistance in the past. These are the best zones to target on any chart.
If we get above $1.00, then I would be looking at $1.60. But let’s take it one candle at a time.
In summary, the longer term weekly chart of Fandom shows a reversal pattern. A major new uptrend is beginning. This is backed by the fundamentals regarding the NFT craze, and also the catalyst which is Canada legalizing individual sports betting which would be bullish the entire esports sector.