RAC - Charts & Price Action, page-20964

RACs daily chart today is really interesting and set up to be a battle of the bulls and bears for today...

On the plus side - we have broken above the very significant $1.60 level again. In the past, this price has acted as a significant support area for RAC in 2020, 2022 and 2023, as well as a last major resistance level before the collapse (and what looks like may have been capitulation marking a long term bottom) that occurred in July/August last year. However, this is the third time we have broken above this level - the previous two times there was too much selling and it signified a short term retreat was starting. This time at least we also have broken out of the downwards sloping channel that has characterised this recent consolidation and previously was acting as resistance and should therefore also act as support at this level. Also, price got as low as $1.61 yesterday before bouncing off this level as support.

On the negative side, yesterdays price action produce a "gravestone doji" which can indicate the potential for a short term trend change. You can see the wick spiking up to $1.75 before closing at $1.65. You'll see similar long wicks on 18 March and 8 April when price also spiked up before closing lower and signified the start of the price correction. There's also a gap opened up at $1.55-$1.61 which for followers of gaps could be a magnet to draw price lower.

Which way will it go? Short term I think it's anyone's guess. Ideally we can hold this level and consolidate around here before moving higher... Daily chart below: