RAC - Charts & Price Action, page-4566

Apols if some charts have been posted recently, I'm struggling to keep up with the amount of posts in this forum at the moment.

Anyway, sharing some of my views, and as always, appreciate input from the more seasoned chartists that lurk about.

Short term is looking ok, there has been some nice volume churning through the high 3's - early 4's all week which hopefully means a bit of support about. My one observation is the gap highlighted. I'm never a fan of price gaps (been burnt before!) but I think in a less liquid stock (like RAC) and on big volume, the fill theory sometimes doesn't hold as often. Either way, if it heads that direction, it's probably the first zone I'd be looking at to pick up some extras.




On the daily (weekly and monthly) I still think it looks very overcooked (my chart views tend to be more conservative and risk averse to others' predictions, but admittedly the price action has continued to defy my expectations!). It has had a tremendous run for 6 weeks now. I know we have multiple sets of news due so any positives from that could continue to drive it higher (I think I estimated around 4.58 when playing with some fibs). MACD is also losing lots of momentum so I don't think it can continue marching too much higher in the short term without consolidating soon.

Some other things at play:
1) Heaps of traders have entered in recent weeks in anticipation of upcoming announcements (probably also reflected in the volume of posts on this forum), therefore my past experience says it may well end up a case of early blip up then big sell down on news.
2) The price hasn't paused to consolidate meaningfully since the Dec/Jan period. The longer EMA on the chart appears to have been a good indicator of a consolidation level. If I recall correctly, there are no immediate announcements expected after this month, so I hope to see several weeks of healthy (boring) consolidation and base formation afterwards. Wombats log chart suggests something similar too if we start to get close to the top of his channel.

Anyway, I'm no expert so keen to see other observations! Cheers!

ps FWIW, I removed another 3000 shares from the tradeable market this week. GLTAH