What appeared bullish yesterday, after their results came out, has so far failed. This brings me back to the drawing board with RFG. Most recent low of $6.10 is a must hold on end of day closing basis for a short term long trade in my book. I have also marked other relevant support levels on the chart where the breakout of 25/08/2016 was successfully tested back in late 2016. The low of the breakout bar on 25/08/2016 was $6.09 retest of late 2016 low was @ $6.06. Boys, back then, were fishing out for tight long stops by dropping the price just below ( 3 cents) the low of the breakout bar of 25/08/2016. When no supply resurfaced, after the threatening bar of 16/11/2016 a bullish pivot followed on 22/11/2016 which resulted in a testing the resistance around $7.20.
Now, will we see a retest of the low made in late 2016 @ $6.06 ? This may be the case. That is why I am watching the price action and volume behaviour carefully over the coming days.
It is very important to see the zone of $6.00 hold as support specially on end of week closing basis since my view with RFG is medium term. Failure to do so, may suggest a completion of a topping pattern and lower prices. In short, RFG is at a make or break level as far as I am concerned. If I see the support zone of $6.00 violated with a breakdown, I will close my existing open long position at a loss and move on.
Disclosure : RFG held.
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