Zak Mir's AIM Stocks Charting Request: Range Resources (RRL) Bull Trap Sell Signal

PUBLISHED: Nov 28 2012 @ 08:19 | Comments (1) |

Here are the latest extracts from Zak’s new premium blog AIM Stocks Charting

It stars the likes of Petrel Resources (LSE:PET), Leni Gas And Oil (LSE:LGO) / Gulf Keystone (LSE:GKP) – day in / day out.

Range Resources (RRL): Resistance Below Former Support

While some may be encouraged by the way that shares of Range Resources managed to rally back above 4p in recent sessions, as things stand it would appear that we have another shorting opportunity on tap just below the 50 day moving average now at 4.42p. This ties in with the previous 4.5p ceiling suggested technically, with the implication being that after a 3 day failure to clear the 50 day line we can expect a new leg down to begin, especially given the way that former July – September support between 4.5p = 5p has come in as resistance. The expectation now is that while there is no end of day close back above the 50 day line Range Resources could flip back to the bottom of an October price channel floor as low as 3p over the next 3-4 weeks.

On a longer timeframe it can still be said that the overall technical picture here remains very negative as it can be seen how over the course of much of 2012 new resistance and old support only just overlap before nee legs down are triggered.

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