Huge gap up on the chart here for Rightmove after shares popped as high as 24% on today’s open following news on a possible REA takeover. Currently, the shares are trading at around 678p a share, crushing through the previous technical levels. Perhaps a rally towards January of 2022 may now be likely? Let’s dive in…

 

The next key resistance here is the level of 709p, which is the high of 2020 right before the covid pandemic struck. If the stock can overcome this level then 808p will certainly be within reach in the short-medium term from a momentum-based perspective. Of course, this is granted that there isn’t any bad news on the takeover in the coming weeks. Since October of 2022 and last week, Rightmove’s share price has been rangebound between 460p and 490p. This 22-month period of no gains for investors has finally become a relief. However, on the flip side, there is now the possibility of some profit-taking following this surge as pre-caution that the events may occur as the takeover discussions unfold. The previous resistance of 666p could act as the near-term support here, followed by 614p. A break below 614p may lead to a closure of the gap but this would have to be analysed if a dip below 614p was to occur.