SRC Price Retesting the 100-Day EMA; Will the Bulls Dominate?

• The SRC price is currently at $35.52.
• The price has recently reclaimed the 50-day EMA.

Spirit Realty Capital, Inc. (NYSE: SRC) is a real estate investment trust (REIT). The company specializes in investments related to single-tenant and operationally critical real estate properties. It has a market capitalization of $4.57 Billion.

Spirit Realty Capital, Inc (SRC) Stock Analysis

SRC stock’s current market price is $36.52. In the last intraday session, the stock experienced a gain of 1.47% and traded with a volume of 3.173 Million. Since SRC stock made its 2023 year high, it is down by 18.41%, displaying the sellers’ strong presence.

The decline in SRC stock price was arrested at the $32.48 level, marking a recent swing low, and it has since rebounded, gaining 13.26% from that point. This refusal to further engage in the ongoing downtrend suggests a bullish sentiment is prevalent in the current market situation. It reclaimed the $34.74 level which was acting as resistance for the price and is currently heading toward the $36.89 resistance to retest it.

Are Bulls Trying to Regain Control?

Recently, the SRC share price reclaimed the 50-day EMA and was sustaining above it. In the last trading session, it went on to retest the 100-day EMA by forming a strong bullish candle. This indicates that the bulls are trying to snatch control of the price from the bears.

The relative strength index (RSI) is at 63.82, which is bullish territory. The RSI line is sloping in the upward direction, indicating that buying pressure is being applied by the bulls. The volume bar has also started to spike in the last few trading sessions. This indicates that the interest of investors has increased in the current scenario.

What the Future Holds for SRC Stock?

In the current scenario, the bulls are trying to gain control of the price. If the price closes above the $36.89 resistance level, then the bulls will get full control of the price and it can reach its next resistance at $42.05.

The 100-day EMA is stopping the price from rising higher, which shows that the bears are also trying to regain control. In the event that the price closes below both the 50-day EMA and the $34.74 support level, it would likely signal an impending price decline. The next support to watch for in this scenario would be at $29.92.

Conclusion

The current scenario shows that both bulls and bears are trying their best to gain control of the price. However, if the price goes below the $36.89 level, the sellers will have the upper hand despite the price being influenced by the buyers. In such a situation, investors are advised to await confirmation, specifically the price reclaiming the $36.89 level. This confirmation would likely precede a strong bullish rally.

Technical levels

• Resistance Levels: $36.89 and $42.05.
• Support Levels: $34.74 and $29.92.

Disclaimer

The views and opinions stated by the author or any other person named in this article are for informational purposes only. They do not provide financial, investment, or other advice. Investing or trading in crypto comes with a risk of financial loss.