- Rentokil Initial’s stock price jumped by 3.59% in the previous trading session.
- It has registered a 9-day losing streak.
- The RTO stock price is at a three-year low level, indicating strong bearish momentum.
The Rentokil Initial stock price has been in a sideways trend since July 2020. It has been moving between the broader range of 450GBX and 550GBX. In other words, the stock price has formed a strong base between these levels, as it has spent too much time here. It tried to escape from this range in the middle of 2021 but soon came back inside it.
In the beginning of the year, the stock showed an upside and tried to break the recent high of 644 GBX but failed. In this upward journey, the stock price created a new high of 660.80 GBX but struggled to sustain above it and declined. The stock price then made a correction and formed a base for the next move toward either side.
The RTO stock price has formed a big gap on the daily chart between 591.8 GBX and 537.8 GBX levels. This gap was made when the stock price declined by over 18% in a single trading session. This fall was triggered after the company revealed that its North American business was facing tough macroeconomic challenges. Furthermore, this arm of the company is facing a shortage in consumer demand.
A Quick Glance on the RTO Stock Chart
The RTO stock price started its decline in the middle of October. The stock price has declined by over 28% in a month, which is terrifying for investors. It seems like the investors have decided the direction of the stock, as it has formed giant bearish candles on the daily chart. However, in the last trading session, the stock price surged by 3.59%.
The levels from where the stock price took a jump can act as a support for it. 387.8GBX will act as support for the price. Furthermore, 325 GBX can also provide a bounce to the price. The resistance levels for the stock are present at 457.9GBX and 576.6GBX, marked as red on the chart above.
What Do the Exponential Moving Averages and Relative Strength Index Suggest About the Price?
The RTO stock price is currently situated well below the exponential moving averages (EMAs). The 50-day and 200-day EMAs have recently formed a death crossover on the daily chart, which suggests that the price is in a downtrend now. The relative strength index (RSI) is curving at 18.85. This indicates the stock price is oversold and can provide some temporary pullback.
Conclusion
After the statement given by the company about the challenges it is facing with the North American Unit, it has witnessed selling pressure. Furthermore, several rating firms have cut the target price of their DR listed on the NYSE. The price has shown good strength in the previous trading session. This momentum should be sustained in order for the bulls to make a comeback.
Technical Level
Resistance – 457.9GBX and 576.6GBX
Support – 387.8GBX and 325GBX
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.