Will the long range bound movement lead to a big move? Revolution beauty stock analysis.

• Revolution beauty stock has been moving sideways since the beginning of 2023.
• The stock has not even once broken this range between 14.4£ and 37.2£.
• Investors now expect a big breakout for the stock to come out of the current range.

Revolution beauty as the name suggests is a makeup and skincare brand started in 2014. The company in such a short span has created good and loyal customer support and that shows in its financials too. The company has seen positive revenue growth over the years but is not profitable yet. 

Technical analysis for the stock-

The stock had been bearish throughout 2022 and finally dropped to its low near november. Since then, the stock has been trading sideways in a zone. 

14.48£ is a crucial level for the stock and as long as the stock trades above this level, we should remain bullish on the stock. The stock tried to breach its resistance at 37.2£ but failed. Recent days have seen new buying movement in the stock and investors hope for a breakout this time. If the stock breaches its next resistance, one can look to enter with 50£ as a target. 

The 1 hour chart shows the stock taking support and another upsurge in the price. The current setup looks stable but does not promise a move either side. 

Most technical indicators currently do not predict any big move which means we might see the stock moving sideways for a few more weeks. Another things that adds up to this conclusion is the sudden decrease in trading volumes in the stock since the beginning of 2023. The volumes chart below shows a crucial dump in the volumes which is the biggest reason for this long running sideways movement. 

Going by the current setup, if the price tries moving upwards, a buy entry can be made above 30£ for a target at 37.2£. On the downside, if the stock breaches 24.55£, we might see a big dip as the next support is near 14£. Buyers and sellers are highly confused as of now and the next 1-2 months might give us more clarity about the stock’s future movement.

Another thing to keep in mind is the company’s earnings report which is set to come out by november end. A movement is expected based on how the report looks like and we will possibly see increased volumes in the stock only then.

Conclusion:

The stock is currently experiencing a volume crunch which is a major reason why there has been no big move since the beginning of 2023. Technical setups too look neutral as of now which means one needs to wait atleast for a month to see the stock’s movement and only then make a move.

Important technical levels-

Major support levels- 24.5£ followed by 14£.

Major resistance levels- 30.05£ followed by 37.2£.