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Redfin's (RDFN) Recovery to Face Major Resistance in the $19-$20 Area

Redfin $RDFN completed double bottom by start of the year. However, as it rallies towards $19-$20, we should consider all the resistance factors here. 

RDFN Daily Chart

(click to enlarge)

Previous Descending Triangle:
- Note that price action since the IPO in 2017 through mid-2018, formed a descending triangle. 
- The support was around $19.20. Price broke below this key support in August 2018, and continued to to fall until it tagged $14.00.
Double Bottom vs. Resistance:
- We saw price hold above $14 twice, once in November, and again in late December. 
- The rally from this double bottom is pushing price towards the previous triangle support, which could be treated as resistance if the market is still in consolidation/correction mode. 
- Also note the 200-day simple moving average around $19.50. 
- finally, the $20 level is a psychological resistance that is reinforced by a falling trendline.
- Meanwhile, the RSI has already pushed above 70, so as price advances into the $19-$20 area, it will be showing overbought condition. 
- Because of the established price bottom, I would limit the bearish outlook from this resistance area to $16, the middle of the double bottom. 
- A push below $16 could be a sign that the market is ignoring the double bottom and is still in bearish correction mode or at least a sideways consolidation under $20. 
- A break above $21 on the other hand would make me consider upside towards $24. It would also suggest the market is unlikely to be bearish anymore, and is at least in a sideways market.
- The ability to push towards $24 would give me more confidence of support in the $16-$18 area. 

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