This will be my last post about Rocky Mountain High Brands, a fully reporting OTC penny stock engaged in the production of Hemp Infused energy drinks and High Alkaline spring water. I've done two previous posts on RMHB starting when the stock was trading at just over .03 cents, it closed this past Friday at .0548
There are some people who contend that when it comes to penny stocks, that charts are useless. I do not share that view. Charts are simply a reflection of buy side demand and sell side pressure, nothing more and nothing less. Charts simply reflect the trading and are not prejudiced for or against any stock based on price, industry or exchange.
And RMHB's chart is looking very bullish.
After bouncing in and around 3 cents for the better part of 3 months the stock started making strides on October 11th after announcing its graduation from the non reporting gray pink sheet market, to the fully reporting OTCQB. That news seemed to act as a catalyst that pushed the PPS up to .05 cents on October 12th with volumes getting up around 10 million.
The stock then pulled back as volumes cooled off and the PPS drifted lower over the next 5 or 6 sessions, settling in an around .035 cents. This is significant because it established a new and higher base of support.
The next move up started on October 20th when news of a distribution agreement was released. That was the start of a 5 day run that saw volumes soar back over 10 million with the PPS hitting .07 cents interday on the 26th. Then, as before, volumes trading dropped back to less than 10 million over the next 2 trading days with the PPS settling at its current level around 5.5 cents. Again, this is significant because it establishes yet again another higher base of support.
Those looking to time an entry into RMHB, I would suggest watching to see if support is established in and around the area of 4.5 to 5.5 cents. On the first run up from 3 to 5 cents investors had 4 days where the stock based around 3.5 cents before the climb to 7 cents. If the same pattern plays out again there would be another 3 or 4 days in the 4.5 to 5.5 cent area.
This is a chart pattern that you'll hear discussed frequently, its a bullish technical pattern where the PPS climbs to new and higher highs and then settles back to new and higher bases of support. Some will refer to it as "climbing the stairs".
The wild card with RMHB seems to be news. Those perhaps watching and waiting to enter could find themselves on the sidelines when news comes out. And if the pattern continues and volumes go back to 10+ million trading over several days, that's when greed can take over and get people chasing. Those who buy in just as a surge cools off are then left to wait in hope and expectation of another price/volume surge.
Those who jumped in on the first spike to 5 cents, some I am sure bailed out when the stock pulled back to the 3.5 cent area, and then they watched it climb to 7. The stock market is never easy, and sometimes its not a question of timing, but rather of "time in". Even the most experienced market player can get caught buying in on a spike and then watching an investment turn from positive to negative.
That's why I think its vital to play within one's tolerance for risk. When people play with money they can't afford to lose they tend to act more on emotion than on rational thinking. If you're overall "big picture" analysis of a stock is accurate, then it can just be a matter of patience.
Given the low price I don't think volume of even 20 million is that significant, and I am confident in my opinion that this stock will see volumes hitting 50 to 100 million on a daily basis before this year closes out.
Good luck all, and again comments are always welcome so long as they are written in a respectful tone and are absent any profanity.
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