Since October 23, 2023, when it printed a significant green candle, RNDR has seen some nice bullish momentum, topping out at $13.53 on March 11, 2024. Since then, it has seen a nice 45% correction and is now trading in the range between support (S1) and resistance (R1). It also just recently (last week) broke through the support level which is now acting as resistance (R1). The question is will RNDR be able to regain momentum and break through current resistance towards all-time highs or is it losing bullish momentum and moving back towards the current support (S1). Let's look at it in more detail.
As we look at the 1-week chart for RNDR we can see the following:
7 W SMMA* - RNDR is below the Smoothed Moving Average (Yellow Line).
Support & Resistance: There are a couple of levels of notable resistance for RNDR. The first level of resistance (R1) is currently sitting at $9.70, and the next level of resistance (R2) is at $13.22. The current support level (S1) of RNDR is $7.15 and the next level of support (S2) is at $3.19
*The Smoothed Moving Average (SMMA) is a moving average used to gauge price momentum and trends on a chart. Unlike traditional moving averages, this indicator considers a more extended history of price data, which smoothes out short-term fluctuations.
STOCH RSI (Stochastic RSI): Has seemed to have bottomed out. It could remain here at these levels for a while and it is important to wait for the cross to the upside, before a change in momentum.
RSI (Relative Strength Index) & MFI (Money Flow Index): Both have been on a downtrend since March 11, 2024, as indicated by the (WHITE) trendlines. We could see continued movement to the downside, towards the bottom of the channel. Alternatively, we could see these indicators flatten out and/or start moving to the upside.
Bullish Scenario: RNDR had a nice breakout of the bullish flag pattern at the end of April with two large bullish candles. However, over the last 4 weeks, bullish momentum has seemed to slow down with it printing several red candles and moving to the downside. However, this could be part of the cooling-off process, where RNDR attempts to come back down to test support (S1) before moving upwards again.
The ORANGE box indicates a nice accumulation area if one is bullish on RNDR and the AI sector in the upcoming weeks and months.
Waiting for the STOCH RSI to cross to the upside and the change in the direction of the RSI and MFI would support the bull's thesis.
Once RNDR continues its upward movement and breaks through the current level of resistance as well as the 7-week SMMA, we can be more confident of RNDR being bullish. Also, watch out for some higher highs and higher lows over the next few weeks as confirmation.
Bearish Scenario: RNDR just recently (last week) broke down through the support level which is now acting as resistance (R1) and is indicating bearish momentum - especially if it stays below that support level for some time.
If it moves back towards the support level (S1) and doesn’t hold, we could expect some trading between the (S1) and (S2) for some time.
If RNDR stays and continues moving below the 7-week SMMA, this could indicate sustained bearish momentum.
In addition, we need to keep an eye on the RSI and MFI for continued selling pressure and movement to the downside, which would also indicate a more bearish scenario if this were to continue for several weeks or months.
Lastly, watch for lower lows and lower highs which would strengthen the bears.