Watching 10.30 as Potential Support in RDW

 

Now that RDW is starting to pull back, I just wanted to give a quick update on how I’m looking at this name. Up to this point, the pullbacks have been fairly orderly, and one of the tools that has been helping me time entries is the 13-day simple moving average of the lows. This moving average has done a good job of acting as dynamic support, and so far it’s been working well for me.

As of now, that 13-day SMA of the lows is sitting right around the 10.30 level. That immediately puts that area on my radar as a potential support zone. That said, I’m not interested in blindly buying just because price touches a moving average. A level on a chart is only an area of interest it’s not a signal by itself.

If RDW pulls back into that 10.30 area, what I want to see next is confirmation that buyers are actually showing up. There are a few different ways that can happen. One thing I’ll be watching for is a bullish reversal bar on an intraday timeframe. That would tell me sellers are losing control and buyers are beginning to step in.

Another clue could come from relative strength. If the broader market is weak and RDW is holding firm or starting to firm up near that support level, that’s information. Relative strength during a pullback often precedes the next leg higher.

I’ll also be paying close attention to how the stock behaves early in the session if it’s sitting near support. A tight consolidation during the first hour, followed by an opening range breakout, would be another constructive signal. Tight price action after a pullback often means supply is drying up.

The main point is this: 10.30 is an area, not a trade. I’m watching that level closely, but I’ll only get involved if price action confirms that buyers are defending it. When support lines up with constructive behavior, the odds improve. Until then, patience is part of the process.

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