- 1 RMV PLC: The company is experiencing a rise in the mortgage rate which may cause problems at the financial level.
- 2 The company’s financials are strong, but RMV stock price is consolidating.
- 3 The current price action is hovering around the EMAs, know more about the business.
Britain’s one of the largest property marketplaces, Rightmove PLC (LON: RMV), may be experiencing a decrease in revenue as per the UK’s economic situation.
The Fire of Rising Interest Rates
The average two-year fixed-rate mortgage at a 95% loan-to-value ratio has increased to 6.36% from 6.22% during the last week and more than double year-on-year due to surging base interest rates. It will lead to Landlords being expected to leave the buy-to-let market due to decreasing profits in the UK economy, resulting in fewer rentable properties.
Management is optimistic
The above situation will impact Rightmove’s revenue as fewer agents and landlords will be interested in renting out their properties on its marketplace. Despite this, the management of Rightmove is stating that people are still planning their move. The number of individuals contacting estate agents remains higher than pre-Covid levels.
Technical Analysis and Prediction of RMV Stock Price
The RMV stock price has been consolidating since it broke its major support in September last year. Initially, the price dropped down to £457. The bullish trend of the London Stock Exchange took over and pushed the stock up above £541, breaking a resistance level. However, the bears regained control once again and the price failed to break the £589 resistance level. It was the start of the current consolidation trend.
As of this writing, the RMV stock price is trading at the level of £562. The consolidation has gotten even steeper than before with an immediate resistance level of £589 and a support of £537.
Furthermore, One of the things to notice here is that the stock is surfing its EMAs. The bulls are taking support of the 50-day EMA at £556 along with the 200-day EMA at £553. If the bulls can continue taking the support, it will lead to an uptrend. The next destination of the RMV stock price is towards its immediate resistance level.
The RSI and MACD are stable
However, looking at the RSI and MACD graphs, they are both in a sideways trend fighting with their moving average lines. The MACD is at 1.06 near its neutral level of 0, while the RSI is at 52 again in its neutral territory.
The Rightmove PLC (LON: RMV) is facing some issues due to the economic conditions. The RMV stock price is trading sideways while taking support from its EMAs. It shows that the price prediction will be bullish if the bulls can take on the likes of the current trendline.
Support: £537, and £490
Resistance: £589, and £632
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Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.