Range Resources (RRL): All About 3p Holding

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Range Resources (LSE:RRL): Possible (Bullish) Falling Wedge Pattern

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I suppose it can be said that the story at Range Resources is all about private investors backing the oil & gas producer as the next Tullow Oil (LSE:TLW), but so far this not quite coming to fruition. What we have been treated to technically is something of a slow death decline in terms of the journey down from 16p in March. While the easiest thing to stay is that this stock is merely a sell into strength until it heads towards 0p, I am not going to go for the “easy” route here.


This is because there is just about enough evidence to suspect the shares are within a so called falling wedge formation (a triangle), with its support line running at 3p. At least while above 3p on an end of day close basis one can say with justification that there may be a scenario whereby Range Resources shares end the recent rout and then reverse from there, the 3p level.

The other strategy here other than bottom fishing at 3p at a July support line would be to wait for a break of the 2012 resistance line / 50 day moving average at 3.7p on a weekly close basis – a momentum trade that some may feel more comfortable with. The best case scenario at this stage is that there is a break of 3.7p to deliver initial upside at the former August resistance zone of 6p, although admittedly this feels like it is a long way away.

For more on the most popular AIM stocks like Range Resources read Zak’s Amazon eBook bestseller, Lessons From The Financial Markets For 2013 by clicking here


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