ARV Chart & TA

With so much going on with ARV at the moment, I thought I'd have a look at the chart to try to understand where it may be heading.

In the below chart, it's obvious to me that we've been stuck in trading range between 16 at 22 for many months now. In this time we've bounced off the top and bottom of this range a number of times which resulted in a false breakout to the downside in April. At this time, we touched 15.5 very briefly and closed back on support at 16.0. In the next couple of sessions, we confirmed the rejection of the support and pushed back up to ultimately test the resistance in May.

We had good volume to punch through the resistance at 22 but bounced off the 200EMA the following session and closed below the resistance mark that same day (same day as completion of Novo share sale). Failed.

Since then, we're drifted back down to the support zone in absence of material updates from the company.

On Monday this week, we pushed down through 16 support again and touched 15.5 very briefly but we managed to close at 16 which formed a rather positive reversal doji. Yesterday's action was very positive in that we held support at 16 and went higher to close at 16.5 which tells me the sellers have been exhausted at these levels again and buyers have recognized an excellent buy opportunity which has shifted the dynamic.

Notwithstanding some major marco event or issue at RH, I think it's a good probability that we'll head north to test resistance again with the reversal of this minor downtrend to be confirmed when we close above 17.5 (circa 21EMA).

IMO this is a good buying zone and trade opportunity if you're prepared to hold a trade parcel for a week or so.