Rapala bounces from deep correction territory - June 2026Rapala VMC OyjOMXHEX_DLY:RAP1Vwithout_worriesSYMBOL: OMXHEX:RAP1V | DIRECTION: LONG | TIMEFRAME: Monthly Published: June 2026 On the above Monthly chart RAP1V has corrected approximately 92 percent from cycle highs of 10 Euro. A number of reasons now exist for a bullish outlook. 1) Bullish divergence. Price has made a lower low whilst RSI has made a higher low over the past 90 days. Classic early-stage recovery signal that often precedes meaningful reversals. 2) Price sits just above both the 50-day and 200-day simple moving averages for the first time in a long long while. Proximity to these levels suggests key support is holding. Look left at what occurred when price tested these moving averages previously. Daily 3) RSI on the weekly timeframe reads 52.2, neutral territory. The higher the timeframe you go, the stronger the signal. Weekly RSI confirmation of the divergence structure adds conviction to the bounce thesis. 4) Volume is contracting on down moves. This is a signature of seller exhaustion. Fewer sellers stepping in at lower prices suggests capitulation may be complete. 5) Price sits at the 57th percentile of its 52-week range, neither deeply oversold nor overbought. Room to run upward exists without price needing to break into fresh territory immediately. Is it possible price corrects further? Sure. Is it probable? No. Ww ===================================== Disclaimer This is not financial advice. I am not a financial adviser. This idea is for educational and informational purposes only. Do your own research. =====================================