Rollins (ROL) stock price entered an uptrend during mid-February, rising from the support level of $34.50. The stock price surged approximately 30.40%, forming an annual high of $45.04. The bullish move was halted after the second-quarter earnings report was released.
Rollins released its second-quarter earnings report on 26 July 2023. The company did not beat the consensus estimate of earnings per share. ROL reported an EPS of $0.22, while the estimate was $0.235.
Since then, ROL stock price witnessed a significant downfall. The stock price retraced and recently formed minor support at $34.80. After the support formation, the ROL stock price surged and faced rejection as the price rose to $40.
Rollins stock price has been printing bearish candles for the last two days. If the bearish momentum prevails, the stock price might melt toward the recent support of $34.80. The market structure shows a strong dominance of bears over the price.
On the other hand, if the Rollins’ stock price rises above $38.80, it may head toward the next resistance level of $40.20.
Q3 Report of Rollins to be Released Soon
The third quarter report of Rollins is slated to be released on 25 October. The consensus has estimated the revenue to be $827.36 Million, and the earnings per share is estimated to be $0.249.
The demand environment for the leading pest and termite control services provider stays in good shape with vigorous construction activity acting as a catalyst. Revenues increased 14.9% year-over-year in Q2 of 2023, with all of its residential, commercial, and termite business lines showing growth.
Will ROL Stock Price Fall to $34.80?
The stock price has plunged below 20, 50, 100, and 200-day exponential moving averages, indicating bearish momentum. The 20-day EMA has been acting as a resistance to the stock price.
The Chaikin money flow score has dropped below the 0 mark. Currently, it stands at -0.02, suggesting weakness and capital outflow from the market.
The relative strength index has also melted below the 40 mark. It stands at 37.30, nearing the oversold zone, implying strong participation of bears in the market. The Bollinger bands have slightly contracted, indicating a decrease in volatility.
Conclusion
Rollins’ market structure and price action are bearish after the stock price faced rejection from $38.80. Technical parameters favor the selling side and if bearish momentum prevails, the stock price may slip to $34.80.
Technical Levels
Major support: $34.50 and $33.60
Major resistance: $38.80 and $40.20
