Rollins Inc. (ROL) is the self-proclaimed leader in pest control. You can view their official website here. One of the better known subsidiaries for Rollins Inc. (ROL) is Orkin Pest Control.

Orkin Pest Control was the employer for a former Trendy Stock Charts member and one of my best friends, LittleBass (Jim), before he started dealing with his cancer issues.

For a quick update on LittleBass. I say former member because as most know he has been dealing with cancer issues. Currently, he just finished a trial that did not go well. He has tried several different treatments and has basically run out of options. Nothing has worked to kill the cancer. His future isn’t bright to beat this cancer.

I didn’t mean to bring a down note to the article, but wanted to provide an update of LittleBass because of the tie-in opportunity. Please say a prayer for LittleBass.

Let’s get back to Rollins Inc. (ROL) and its pest control. I hate spiders. I hate them almost, if not more, than I hate clowns. Both are extremely creepy to me. I hope that its charts don’t creep me out too.

Rollins Inc. (ROL) – 20 Year Chart

This first chart is a 20 year monthly candlestick chart. Where has Rollins Inc. (ROL) share price been? Know your history so you are doomed to repeat failures.

I’ve placed 3 different Fibonacci Extension Tools on this 20 year chart and included a long-term trendline.

Let’s summarize the bullish and bearish factors on the 20 year chart.

Bearish Items

• From the trendline perspective, ROL’s share price is extended. However I will address this in another chart below where I start to develop some trading channels for ROL’s share price.
• The MACD Histogram on this 20 year chart shows ROL’s buying momentum still increasing but possibly with possibly another month or two of continued increases before a slow-down in buying momentum. A slow-down in buying momentum usually indicates a period of consolidation.
• From the Fibonacci Extension Tool perspective, ROL’s share price should see resistance in the $35.70 – $37.57 area. This seems very plausible after an extended run the last 6 months which has added almost 50% to ROL’s share price. It could be time for a consolidation soon. Soon being a relative term on a 20 year chart.

Now, let’s review some of the bullish items on this 20 year chart.[s2If !current_user_can(access_s2member_level1)]….

If you want to continue reading this article for Rollins Inc. (ROL), you must first login. I look at the bullish items on the 20 year chart, look at shorter-term pullback areas to join the overall uptrend and price targets to watch for, both short and long-term.

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Bullish Items

• There is a nice confluence of Target Lines of from the Fibonacci Extension Tools in the $43.40 range. This appears to be the target area for the current long-term uptrend.
• Golden Ratios that still reside overhead from Fibonacci Extension Tools
• ROL has 6 months of above average buying volume, with a MACD Histogram showing increasing buying momentum; the buying momentum could be near a peak though

What to watch for on this chart – the development of the monthly candlestick for February 2017. Also monitor the candlestick with the resistance area in the $35 – $37 range.

ROL – Developing Trading Channels

This is a 10 year monthly chart. It reflects the entire uptrend captured by the supporting trendline. I erased all items except for the main supporting trendline. I then duplicated the trendline and created my first Trading Channel. The first Trading Channel is the very bottom Trading Channel on the below chart.

The first Trading Channel captures approximately 6 years of trading activity. The Trading Channel had a width of $3.70; I then duplicated that trading channel a couple of times.

In the last 2 years, ROL’s share price has moved up through 2 additional channels on increasing buying volume. That appears to be a nice bullish run for the share price.

These channels can be used to trade around a core position for ROL. Buy near the bottoms of channels, sell near the tops of channels.

Now let’s move on to some shorter-term charts and try to determine a more specific trading strategy for Rollins Inc. (ROL).

ROL – 2 Year Weekly

This 2 year weekly candlestick chart takes a look at ROL using the Trading Channels developed above.

I also placed a Fibonacci Extension Tool on a part of the most recent uptrend. The Golden Ratios for these 2 Fibonacci Extension Tools converge around the $43 area, making that price target very likely.

Using a scale-in purchase strategy, a 1/3 purchase could be made now with higher price targets expected and a weekly MACD Histogram showing increasing buying momentum.

ROL’s share price is at a current resistance area on this 2 weekly chart. February 2017’s candlestick needs to close above the $35.70 area to break through it. ROL’s share price currently sits at $35.57, right below the resistance area.

Any pullbacks to the trendline on average or lighter than average selling volume would be an opportunity to make another scale-in purchase.

The worst case scenario I see for ROL’s share price is the $30 price area. That area represents the breakout area from ROL’s most recent breakout. If ROL’s share price were to pullback to this area, that would be another scale-in purchase opportunity.

ROL – Moving Averages

This 1 year daily chart takes a look at ROL from a moving average perspective. All the moving averages are sequential, typical of a strong uptrend.

The worst case scenario I mentioned above was the $30 area. That is currently the territory of the 200 Day moving average. It is nice when different types of analysis confirm each other.

Any pullback to the 20 Day or 50 Day moving average represent a scale-in purchase from a moving average perspective.

Rollins Inc. (ROL) – Summary

Don’t bug out if the share price for Rollins Inc. (ROL) pulls back in the 5-10% range. Instead, use it as an opportunity to jump on the current uptrend. An uptrend that appears to have strength to continue.

The current uptrend appears to have 20%+ potential in the next year to year and a half based on the Target Lines from the Fibonacci Extension Tools. Any pullback from current share prices can provide even larger returns. Therefore, always try to use a scale-in purchase strategy rather than the typical “all-in” strategy.

Decide on the value of your ROL investment. Divide it by 3. Those are your 3 scale-in purchase amounts.

Good luck trading.

ON DECK: Himax Technologies (HIMX)

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