RFM has finally taken out its major resistance P2 today with exceptional volume after consolidating in more than two weeks, suggesting the resumption of its uptrend in the intermediate term.
The resumption of the uptrend is pointing out at 2.85 as target in intermediate term.
However, current uptrend would seem to be advancing in a slightly lower pacing from its previous advances as pointed out by the fan lines.
6-Month Daily Chart
It has also broke out of its ascending triangle pattern today, pointing out at 2.27 as an immediate target.
There are still no signs of danger appearing on its weekly chart.
I am trying to be careful in trading break outs, specially when it is their first so I would be still on the sidelines here as it deemed to be much safer to wait for a pull back. I also set a rule in my system to sell the first break out and buy the second one so today should have been a sell IF I had a position.
A pull back to P2 should provide a good buying opportunity, or as close as possible. If it would be possible, below P2 should also provide good bargains.
RFM is also highly obedient of its trend/support line.
Short Term Target: 2.27
Intermediate Term Target: 2.85
Immediate Support: 2
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