RAC - Charts & Price Action, page-20875

To add to the excellent charting already presented here this weekend @W3hunter, @brrrattt and @Teeth, there are some additional reasons to have confidence that the share price may hopefully be reaching (or have reached) the lows for this retracement.

Firstly, on the daily chart, we can see that the price has found support at the bottom of a down-trending channel formed by the two lower highs reached during this recent move and may now hopefully rebound:



Secondly, on the weekly, we see a convergence of what should be two very strong support structures:
- firstly, a horizontal line that acted as resistance in July and October 2020 and again recently in November 2023 and acted as support back in June 2023.
- secondly, a down-trend line that started back in December 2021 and acted as resistance in October 2022 and recently in March 2024 before being broken out of as part of the recent move to $1.81 and now may hopefully act in reverse as support at a re-test of the same down-trend line.



Also on the weekly you can see that if this level does hold as support, RAC could be forming a fairly big inverse head and shoulders bottom pattern. Although these patterns can be unreliable, they are most accurate at the bottom of significant down-trends. If this level does hold, I'll update the chart to show the Right Shoulder, but an indicative breakout at this stage would be in the range of $1.90 and the target following breakout would be at around the $3.00 level which nicely corresponds to an area where we should expect to encounter significant resistance and selling due to it being such a significant support and resistance level back in 2021 and 2022.