After an impressive 9% gain in July, the Rightmove share price ended August close to unchanged. Will this month mark a return to form for the estate agent? Although Rightmove Plc (LON: RMV) started last month on a high (literally), RMV reversed from the 734p record price set on the 4th, closing out the month at 701.40p.
FTSE Constituent Rightmove’s impressive first-half trading update released at the end of July revealed revenue had increased not only from the same period in 2020 but was also higher than 2019’s pre-pandemic numbers. This propelled the share price above 2019’s previous best of 710p and into unchartered territory. However, since then, the Rightmove share price has spent most of the time in a tight channel between 688p and 710p. Although, the price does appear to be building up for another run at July’s record.
The daily chart shows Rightmove has gained around 90% from the March 2020 low. However, RMV is only higher by 9% year-to-date. Considering the UK economy is now fully open for business, this should leave some room for upside.
Furthermore, the trough in August found good support at the October 2020 high of 688p, and as a result, RMV should soon clear February 2020s, setting the share price up nicely for a second assault on 742p. Also, the major moving averages are all trending higher, supporting the rally. As well as the RSI starting to face north.
The bullish view remains valid as long as the Rightmove share price can sustain 688p. However, if RMV slides below 688p on a closing basis, this will invalidate the positive outlook and suggest a bearish reversal.
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