In the medium term, RLT is moving sideways with support at 0.58 and resistance at 0.76 to 0.77. Notice however, the hammer it formed this week, which suggests a possible bottom at 0.67. If this is the case, then RLT would look like it is already forming bullish higher low. If it follows the suggested upward channel (red line), then RLT has a target of 0.90, although its range suggests an upside of 0.18 or a target of 0.94 should it breakout above its current range.
In the daily chart, a convincing break above last Friday’s close of 0.71 should confirm that it is ready to resume its uptrend.
Resistances to watch out for are the 0.76 and 0.87 levels as RLT has not been able to trade around these levels since late 2006 to early 2007. It attempted to break the 0.76 level last December 2009 but was unsuccessful. RLT retraced to as low as 0.55 before bouncing strongly off this low. RLT is currently hesitating below 0.76 again but if it is able to break above it this time, then it may retest 0.87 with an eventual target of 1.10.
5 comments:
I like the idea!
a possible nice cup and handle (dec.2009-present) in the works
Gen, still has to be confirmed though! The setup is here, we just need to wait and see! I have actually been watching RLT for a while now...ever since a friend of mine told me to be on the look out for this stock because of some fundamental story that may act as a catalyst to push prices higher. Anyway, today, I remembered why I get turned off with RLT intraday. Have you seen its postings? Hahaha! Monstrous millions per fluct. We'll know if the play is here when the sell postings get gobbled up! :)
Possible cup and handle, yeah. Break 0.76 to 0.87 to confirm. Pwede pa nga double bottom... Although I'm a bit concerned with the times it becomes illiquid. Chart patterns fail with illiquid stocks so I'd rather not look that long term with RLT. Hahaha! :P
regarding postings, sinabi mo! hahahaha! but in my limited experience, such postings are only there to discourage premature buy ups i.e. until the powers that be have deemed the story and the potential patterns complete. Whether buying low or on breakout, I reckon the best way to play this to buy small, and buy with a proper and acceptable stop in mind.
What I like about this stock (for now) is that there are potential bidders you could sell down to on a per fluc basis should you like to sell unlike less (more) (il)liquid ones!
Of course they could vanish just as quickly. Still, sarap nung risk-reward eh!
I think it's time! :P Still, break .71 to confirm.
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