Reading ChartsTime to look at the charts to see what most of the people involved in RHT were thinking about the stock this week.
On Weekly Chart
we are bellow EMA9 and 20 and almost touched KAMA. RSIs/CCI /Stochastics are pointing lower but they are not in oversold position yet (still room to go lower). True Strength Index is curling down but still in positive territory. Resistance on Weekly Chart is around 1.75 (KAMA). If you believe in Fibonacci Retracement’s (I do) 1.66/1.26/1.06 are the points of interest.
Daily Chart
is more negative than a week ago. We still didn’t breach support trend line which is around 1.72 but created 4 lower highs which tell us that prevailing trend is down. RSI/CCI are in oversold territories which should/could give us some relief rally (happened today ?). True Strength Index moved into negative territory indicating lack of momentum and still is pointing down. Price is bellow EMA5 and 9 and bellow KAMA. Support and resistance at trend lines - 1.70 and 2.03. We do have a triangle and can breach this pattern in both directions - 4 lower highs trend would favor rather downside move.
60 Minutes Chart
– we are in down trading channel. Support and resistance is at trending lines: 1.74 and 2.04. True Strength Index is curling up but still in negative territory. Please notice Bollinger Bands are narrowing down. Energy is building and the move can occur in both directions
Looks like many of the board members were waiting for this week beautiful and shiny new PR - which could take the price to the new highs. Too bad it did not arrive. Remember that only thing which pays is the price. And price is not moving up. I would rather be buying around 2.06 (60 minutes breakout ) that bellow. Maybe 1.74 is the price to buy on the bounce from the 60 minutes trend line – and it could be just temporary bounce so I would have my stop limit orders ready.
Wishful thinking and buying on the way lower is extremely efficient way of making your capital smaller.
Happy trading