Price reached an apex in 2013 and has since been in a consolidatory range ever since with resistance levels just above £21 where its currently retesting previous highs. The support lies just underneath £17 and found strong rallies on numerous occasions.
Given that the company has operations in a large number of different countries it exposes it to currency fluctuations and taking into consideration that it's listed on the London Stock Exchange meaning it reports in Great British Pounds, a surge in price has emerged following a dramatic weakening of the currency to all other major currency.
The 50 simple moving average(Yellow Line) is supporting the uptrend with the 200 SMA(Blue Line) a measurable distance away allowing the bulls open season on producing new highs provided they can break through resistance.
Observing the Relative Strength Index(more commonly known as RSI) we see that the indicator has driven across in a directionless motion which is evident in price action over the last three years. The areas highlighted in red are significant levels that have or could determine the speed of the trend.
In the smaller area, the indicator tracked above 80 and if you were to follow the price movement whilst in that zone you'd notice a solid momentum spurt taking place. Proceeding to the larger area we see the indicator becoming restricted, disrupting momentum from taking place however judging the strength of the previous monthly candle, its opened up the possibility of see the indicator rise above the 80 level.
If it were to do that then we'd see the consolidatory pattern broken and fresh highs being registered.
Weekly
On the weekly we can identify two consolidatory price movements that have occurred, one that defines the longer term price movement marked with green lines, the second that's taken place inside the first highlighted with black lines. This suggests high degrees of frustration for investors and traders who ideally like to see prices go higher.
The smaller consolidation pattern broke through its resistance of £20 and subsequently touched the longer term resistance of just above £21. It's difficult to say whether price will continue moving upwards as the sudden move has led the Stochastic to show overbought at a crucial point.
We'd need to see the level of £21 and higher being broken, held and close high to be certain of an impending rally into new territory.
Again the RSI is bumping up against significant resistance with a break to an upside to be considered as bullish in the medium term.
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