RXN may be giving a clue it’s ready to break out

RXN daily chart

RXN has been hitting resistance many times at it approaches 23 many times over the past year (circled in blue). Furthermore, if you zoom out at the chart it also had resistance at the same level back in 2012. RXN has been bouncing around for a year between 15 and 23, and keeps fighting its way back towards 23. Bottom line is that 23 is a significant level for RXN, and looking at today’s volume and bullish action I think it may be providing a clue that the stock is ready to break through the 23 level soon. Today the stock traded 5.5 million shares versus a 10 day average of 724k. This was primarily driven by what looks to be a single order filled¬†at 3:54pm for better than 3.2 million shares. The daily volume today represents the highest volume in the past year as seen above.

As for a trade plan, probably going to sit on the sidelines for this one to observe and gain some insights for use in the future.