Senior PLC (SNR) formed a double top at 160, telling us that at this price buyers are exhausted. This exhaustion is further demonstrated in the Moving Average Convergence Divergence (MACD, 13,26,9), which makes a lower high than the price ( bearish divergence), telling us that price momentum is falling away. The Relative Strength Index (RSI, 14) fell strongly through 50, telling us that SNR now has more losing days over the past 14 days than winning days and lastly, the shorter 20 Exponential Moving Day Average (EMA) has crossed down through the longer 50 EMA which can be bearish in nature. On the positive side, the RSI is in oversold territory (around 30) and although it could remain oversold for some time, the last time the RSI was as low as this (Aug 2009), the price rallied nicely. There is support at 130 and price fall from there could see a return to 110. There is a strong resistance to the price going above 160. I sold 148 and am hoping for support at the current level as it's the 127.2% fib projection of the last retracement (Jan-Feb).
The price shot through the 127.2% fib support and went without pause to the 161.8% projection, as shown. I mentioned yesterday there was support at 130 and the price fell just below before bouncing quite strongly. I took a safe entry on the bounce. Any return below 130 and I'm out and my first target is 138p. There is a little bullish divergence between the price and the MACD histogram (not shown), which is encouraging.
