Revlon's Stock Continues To Fall Toward Support

Revlon Inc. REV shares ticked lower Thursday as retail traders moved the stock down.

The stock was trending throughout the day and saw increased hype although there looks to be no company-specific news. The stock trades with a small float of 7 million shares allowing the stock price to change quickly.

Revlon closed down 0.2% at $12.78, hitting an intraday low of $12.53.

Revlon Daily Chart Analysis

• Shares are trading in a sideways channel and look to have recently been rejected off of resistance.
• The stock is trading above both the 50-day moving average (green) and the 200-day moving average (blue), indicating sentiment in the stock is likely turning bullish.
• Each of these moving averages may hold as a possible area of support in the future.

Key Revlon Levels To Watch

• In early June, the stock ran up to $18 and was rejected at resistance. This is the second time this level held as resistance and may again in the future.
• The stock previously shows it's been able to hold the $10 level, as it struggled to cross below the level and always bounced up immediately.
• The stock has been falling in recent weeks and the Relative Strength Index (RSI) has almost dropped all the way to the oversold area. The RSI sits at 39 now, and the oversold area begins at 30 and goes all the way down to 0.

What’s Next For Revlon?

Bulls would like to see the stock bounce near the support level around $10 and start heading back up. After a bounce at support, bulls would like to see the stock begin to form higher lows and head back up toward the $18 resistance.

Bearish traders would like to see the stock continue to fall toward the possible $10 support level. Bears would then like to see the stock fall below the support level and consolidate under it. With some consolidation below the level, the stock may see a further bearish push.