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Fan Yang

Redfin (RDFN) Bearish Breakout vs. Double Bottom

Redfin $RDFN has made a dramatic recovery in 2019 against a bearish trend in 2018. However, there is a significant pullback at the moment that will be challenging the price bottom that was formed at the end of 2018.

RDFN Daily Chart

(click to enlarge)

Bullish Reversal and Pullback:
- As we can see on the daily chart, price has broken above a falling trendline resistance and the cluster of moving averages in March. 
- it has since extended the breakout but has pulled back in the second half of April.
- With price falling below a rising trendline and below the $20 mark, we are looking at a strong pullback that is likely going to challenge the double bottom we saw develop at the end of 2018.
Key Support:
- There is a bunch of support factors in the $17.80-$19.20 area. 
- I would expect some choppiness here, but ultimately I expect price to show support here if RDFN is going to be bullish.
- Maybe there will be a period of consolidation (sideways action), but if price can hold above $18 for example and eventually rebound back above $20, I would be convinced that the price bottom has been set and that RDFN has the $26 resistance pivot in sight.

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