In the recent couple of months we’ve been seeing a repeating pattern of a breakout setup on weekly charts. We’ve written about it in posts on Netflix (NFLX), Bitcoin (BTCUSD), and Shopify (SHOP).
Last week, Riot Platforms (RIOT) joined the club.
Although it was a shortened trading week, RIOT took out its weekly resistance lines right out of the gate on (the short) Monday. These lines held RIOT below them for a year and a half:
Monday’s close at $13.59 left RIOT’s best respected moving average resistance lines far behind:
- The 87-week SMA (body) resistance line, which registered in January 2022, stood at $11.52. This line got already cracked in the previous week.
- The 91-week SMA (wick) resistance line, which registered in April 2022, hovered 6% higher, at $12.21.
The edge higher was beautifully supported by the 16-week SMA(body) support line.
After the holiday on Tuesday RIOT returned on Wednesday and together with Thursday it took a breather. Then it opened its afterburner on Friday to close a weekly candle 30.96% higher than its previous one:
In a complementary view of the daily chart, RIOT bounced off its best respected moving average support lines mid-June:
These support lines are:
- The 80-day SMA (body) support line @ $10.84 since 2023-01-11
- The 89-day SMA (wick) support line @ $10.36 since 2023-03-13
We’ll keep our eyes on RIOT after this break.