Contents:
Overview
- Overview
- Hybrid 10-Step Trading Strategy Analysis
- Conclusion
RL Commercial REIT Inc. (RCR) is showing bullish consolidation, trading above both the 20-day (5.88) and 200-day (5.60) moving averages. The price is attempting to break out from the 5.98 resistance level, with 6.00 - 6.10 acting as a crucial barrier for further upside. If RCR manages to break 6.00 with strong volume, the next potential target would be 6.20 - 6.30. However, failure to hold above 5.88 could lead to a retracement towards the 5.75 - 5.60 support zone, making it essential to watch for breakout confirmation before entering long positions.
RCR’s January 22, 2025, daily chart is testing the 6.00 resistance, with bullish momentum supported by the 20-MA and 200-MA.
Market State & Trend Context (Step 1)
RCR appears to be in a consolidation phase following an uptrend:
- The 200-day moving average (5.60) is trending upwards, indicating a long-term bullish trend.
- The 20-day moving average (5.88) is acting as near-term support, keeping the price in a stable range.
- The stock is currently trading at 5.98, slightly above both moving averages, which favors a bullish bias.
Position, Location & Key Retracement Zones (Step 2)
- The price is above both the 20-MA and 200-MA, a bullish signal.
- Key resistance lies at 6.00 - 6.10, where previous price action has seen selling pressure.
- Support is forming at 5.85 - 5.88, with additional support at 5.60 (200-MA).
- If price breaks 6.00 with strong volume, a continuation towards 6.20 - 6.30 could be expected.
Power Bars & Retracement Strength (Step 3)
- The stock has built a base around 5.80 - 5.90, indicating buyers are absorbing supply.
- The recent move toward 6.00 suggests increasing bullish momentum.
- A green power bar closing above 6.00 with strong volume would confirm a bullish breakout.
Entry with Confirmation from Both Strategies (Step 4)
- Long trades should be considered on a breakout above 6.00, with confirmation from higher-than-average volume.
- Short trades could be taken if price rejects 6.00 - 6.10, signaling resistance remains strong.
Tactical Stop-Loss Adjustments (Step 5)
- For longs, a stop-loss at 5.85 ensures risk management.
- For shorts, stop-loss should be placed above 6.10, where a breakout would invalidate the bearish thesis.
Color Change as a Secondary Confirmation (Step 6)
- A strong green candle above 6.00 would indicate a confirmed breakout.
- If price turns red near 6.00, a rejection scenario could develop.
Profit-Taking Aligned with Retracement Targets (Step 7)
- For longs, profit-taking could be set at 6.10 - 6.20, with potential for higher targets if momentum sustains.
- For shorts, taking profits around 5.85 - 5.75 would be ideal.
Re-Entry at Secondary Retracement Pullbacks (Step 8)
- A pullback to 5.85 with support confirmation could be a good buying opportunity.
- A failed breakout at 6.00 could offer a short trade re-entry.
Tactical Position Management (Step 9)
- For bullish trades, position sizing can be increased above 6.00 with confirmation.
- For bearish trades, short exposure can be managed cautiously if resistance holds.
Counter-Trend Trades Only When Retracement Fails (Step 10)
- A counter-trend short position can only be justified if 6.00 - 6.10 rejection is clear.
- Otherwise, the bullish trend remains intact, favoring long positions on dips.
Conclusion
The January 22, 2025, daily chart of RCR shows a potential breakout above 6.00, with strong bullish positioning above both moving averages.
- A breakout beyond 6.00 with volume would confirm a bullish continuation.
- If price fails at 6.00, expect a retracement to 5.85 - 5.88 for re-entry.
Traders should monitor 6.00 closely for breakout confirmation.
Disclaimer: This post is for informational purposes only and should not be considered financial advice. Always do your own research before making any trading decisions.
Related Readings
- Micro Stock Trader: Comparing the Modified 10-Step Trading Strategy vs. Retracement Trading Strategy
- Micro Stock Trader Portfolio Tracker Page
