SFR's price drifted back to the lower boundary of the shaded price channel. Having moved up off that low it could again retest the lower boundary before movinge higher (or just falling down out of the channel!) but my feeling is price will again move back towards the top boundary of the channel. There is resistance around $1.20 - $1.25 and a break above that price would suggest a target of $8.50 - something that supports the theory of price heading back to that top channel. $8.50 would see a 22% gain on Friday's closing price.

SFR 3Sept21

26 July 2021

SFR has been in a steep decline since May but has not yet made a technical 12 week downtrend. The stock has been trading in a rising price channel for some 12 months. Last weeks price fell to (and bounced up off) support at $6.20. While last week's candle is a reversal candle suggesting higher price this week I'd consider a trade at this time high risk becuase price would normally fall to the lower boundary of the price channel - and it has stopped short. Price could go higher this week but if it does I'd not be suprised to see it subsequently fall back to test the lower channel boundary before starting another run up. If you look at the price movement last October/November that is exactly whar happened. Price ideally needs to close above $7.00 to confirm the next buy point.

SFR 26Jul21

Contact

Robert Norman

Phone: 0428 346 951
Email: robert@sharecharting.com.au

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