October 8 Chart of the Day - Richardson Electronics
Precision oriented price action technical analysis by far provides the best edges and most setups for traders and investors across the markets so that's what we use for the basis of our reviews
For over 75 years, Richardson Electronics, Ltd. (RELL) has been a provider of engineered solutions, power grid and microwave tubes and related consumables; power conversion and RF and microwave components and replacement parts for diagnostic imaging equipment; and customized display solutions.
The company reports earnings after market close on Wednesday and by request we'll be reviewing their chart from a price action technical analysis perspective.
We have featured over 300 Charts of the Day since May 2023 and teach Price Action Trading for FREE to traders who join our Highly Rated Trade Room.
Monthly Chart
On the monthly chart we can see that after setting its $27.24 all time high (ATH) last year price fell dramatically over the next several months all the way down under $9 earlier this year.
Since then, price has been attempting to bounce up and seemingly deciding whether to continue upwards or fall back to the downside.
Weekly Chart
On the weekly chart we can see with much more clarity the fall from ATHs, and the recent bounce back up. The bulls may be attempting to make a series of higher highs and higher lows.
Trading around $12.60 earlier today price may be attempting to establish its next higher high from this recent uptrend.
Could their earnings be the catalyst that pushes price to its next higher high or will price continue fading?
Only time will tell for sure what price will do next...
We've layered in traditional Fibonacci levels as well as support/resistance and trend to help identify potential price levels of interest and/or future price targets.
Armed with precision oriented charts like these both traders and investors can formulate their respective plans.
So what's next?
We don't make predictions...
Nobody knows for sure but using these 5 price action tools traders and investors can develop levels of interest in both directions.
- Support/Resistance
- Trend
- Fibonacci
- Supply/Demand Zones,
- Change Control Zones
ChartPros provides the exact methodology in its price action technical analysis courses to create charts like this with the most precise and accurate levels from which investors and traders can formulate their respective trade plans.
Take a look at the charts and let us know what you think. We'd like to hear from you in the comments sections.
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