Break Out Chart RHT, page-188

Hi all, thought I'd do a bit of my own write up on the RHT graph. Just before I get into it I just want to say that this is not financial advice whatsoever and is all my own opinion. Please do your own research before investing.

Ok, first of all let's look at the chart over 3 different time periods. If we look at the 3 year chart we can see a consistent uptrend with some significant outbreaks to the upside followed by some periods of slow decline/pullbacks. As you will be able to see this is a common trend in RHT, where, in my opinion, traders come in during the FDA approvals etc. to make some quick cash and sell out. I have drawn out two main lines of uptrend resistance one in black and one in green. The line in black starts all the way back in early 2019 and as you can see the share price has consistently bounced off this support.


Similarly, the green line of support at the bottom on the 1 year chart shows a more severe uptrend over the since the lows of March 2020. I think this major pullback from 28.5c to 8c was due to a few variables. Firstly, the initial drop from 28.5-19.5 was caused by a slowing of profit at the time which, in turn with the lack of any new FDA announcements saw some long term holders become slightly more weary and panic and sell out and the traders to continue to exit on the back of the previous spike in share price. The drop from 19c-8c I believe can be mostly attributed to the overall effect of Covid on the whole market.


Finally, if we look a the 3 month chart you will be able to see two dots which show the infliction point between to recent downtrend resistance line and the two uptrend support lines. I have added dates to these dots to indicate where I believe the share price should bounce off. Technicals aside I still believe there is plenty of upside in this company and I have been holding since July 2019. In my opinion this is currently quite oversold even at these levels BUT, when looking at the chart this pullback is hardly surprising. I hope this is useful to at least some of you and I am happy to be critiqued on my charting as I am not extensively experienced in it, I just thought I'd post what I see when I look at the chart. Always interested to see what others have to say and that's part of the reason for me posting this.










Again, I would like to reiterate that this is not financial advice whatsoever and is all my own opinion. Please do your own research before investing.

Cheers!

Harro