Reading ChartsI think it’s about 6 month since I was ask to read my charts to myself rather than bother others with “negative” price channels. Some of you didn’t like the real picture and real price movement and would rather listen to guys promising $10 before the end of the year.
So, where are we right now looking at the charts ?
On weekly chart (yes, the one for “real” investors and believers) there is no support from 1.15 to 0.19 (!!!). Why ? Thanks to parabolic rise from September 2017 (we cherished all the way) till middle of February 2018 (when bad guys made some serious $$$) and when the run ended.
[img]https://i.postimg.cc/j2D4vLCk/RHT-Daily.pnghttps://[/img]
Daily chart doesn’t show any support at all.
If you read my charts you would remember I pointed to decline showing three lower pick on RSI(5) in February where it all started falling apart. I also mentioned I sold my positions in March. I traded this stock 3 times to make sure my current position (yes I have some and it’s under the water right now) is owned for free. This is very important when you trade/invest in juniors of any kind. Lower your own capital to 25% or even better to 0%.
So, is it bad ? Yes, it is. Selling and buying are mostly emotional. If there are no more sellers, well, selling will stop. Simple. Are we going to face end year tax selling ? If stock drops much lower – probably not.
So, what’s good ?
- Stock is oversold and 0.24 from EMA(9) – it’s 28%. Happens seldom and is asking for the bounce.
- RSIs very oversold and CCI being oversold and showing divergence. CCI usually acts faster than RSI so the bounce should be coming.
- Stock sold off on a huge volume what could signal that the end should be near and stock could find the bottom. But before we have a bottom I would buy for the trade only and quick profits.
- Still no insiders selling
I’m quasi fundamental trader. Buy on fundamentals (or possible good prospects) and sell on technicals. There is no one person on the board who really knows what’s going on within the company and if we have such a person she/he is doing something illegal.
Don’t get excited and keep watching price movement.
Happy trading