Rogers Communications shares technical analysis: Range-bound trading persists near $31.96 resistance

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Rogers Communications up 0.62% today

Highlights

Rogers Communications defended its unlimited-data advertising after a Competition Tribunal ruling, and is weighing subsequent actions.
Regulatory scrutiny could force Rogers to adjust its advertising approach or face increased compliance and legal costs going forward.
Shares of Rogers trade below key moving averages with bearish momentum signals, an expected range of $30.68 to $32.32, and 65% downside probability in the short term.

Regulatory scrutiny emerges as advertising practices face tribunal ruling

Rogers Communications defended its unlimited-data advertising practices following a recent ruling by the Competition Tribunal, with the company stating it is currently considering its next steps, according to Rallies. This response introduces ongoing regulatory scrutiny, which could lead to changes in advertising strategy or future compliance obligations. While the event raises potential concerns about operational or legal costs, the overall news flow positions regulatory developments as a meaningful factor in the near-term market context.

Negative momentum persists as resistance holds above market

The hour-by-hour technicals indicate that RCI trades below the MA-20 and MA-50, with the daily chart also showing the price remains under the MA-200. The nearest significant resistance is defined by the Ichimoku Kijun at $31.96. Momentum indicators remain negative: MACD and ADX both suggest selling persists, while RSI and CCI are in Sell territory. Stoch RSI holds neutral, showing no clear overbought or oversold reading, and Bull/Bear Power on the daily chart confirms sellers' dominance. The Awesome Oscillator aligns with this negative momentum bias.

Sideways bias predicted as downside risk outweighs upside

In the short term, RCI is expected to range between $30.68 and $32.32 over the next four trading days, reflecting typical volatility relative to current levels. Probability analysis shows a 65% likelihood of further downside, while the chance of an upside move stands at 35%. Most likely, the price will consolidate sideways unless a decisive break occurs. A bullish scenario would be confirmed only if the price pushes above the $31.96 resistance, while a decline below $30.68 would indicate a renewed bearish move.

Viktoras Karapetjanc, analyst at Traders Union, sees Rogers Communications trading in a negative pattern, but notes the regulatory ruling as a central focus for near-term sentiment. He believes heightened scrutiny on advertising could shape how investors view compliance risk and potential earnings impact. The technical setup remains bearish, yet the analyst notes the price could reclaim a constructive tone if it breaks above $31.96. With short-term volatility defined, he retains an optimistic perspective. "If Rogers manages regulatory challenges well and overcomes nearby resistance, I expect momentum to turn in its favor fairly soon."

Previously it was reported that Rogers was ordered by the Competition Tribunal to pay a significant penalty and publish corrective notices over misleading advertising of its Infinite wireless plans. With the regulatory outcome now a key market factor, traders should monitor the $31.96 resistance level as a crucial threshold for any potential reversal in Rogers Communications' share price trajectory.

Source of Data: Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.