There is a rather odd divergence between the fortunes of the company Reliq Health Technologies Inc. (RHT:TSX.V; RQHTF:OTCQB; A2AJTB:WKN), which is gaining more and more contracts and coming out with a stream of positive news and the recent poor performance of its stock price and clearly, if the former is true, it is presenting investors with an opportunity to buy the stock before this divergence corrects itself with an appreciation of the stock.
A reason that the stock declined this month into the 2nd low of the Double Bottom that we can see clearly on its latest 1-year chart is that it has been the victim of a short attack, apparently involving a sort of “character assassination” of the company by means of making allegations which have since been vigorously and decisively refuted and discredited by the company. But whatever the reason the stock looks technically like a buy here with it believed to be at the 2nd low of this Double Bottom which is forming some way beneath a still rising 200-day moving average, with its accumulation line having held up well on the decline from its early February high. However, the case for it turning higher from here looks a lot more convincing on its 5-year chart.
On the 5-year chart we can see that the overall trend has been higher since a giant larger order Double Bottom formed in 2019 and 2020. This chart shows that the price is at the lower boundary of the broad major uptrend shown and also at a significant support level, so this is a good point for it to start higher again, with the overall strong Accumulation line a supporting factor.
The conclusion is that Reliq Health is a strong buy here for all timeframes. It was included as a buy in a Market Notebook update posted before today’s open.
Reliq Health Technologies website
Reliq Health Technologies RHT.TSX, RQHTF on OTC, trading at C$0.73, $0.572 at 12.15 pm EDT on 26th April 22.
Originally posted on CliveMaund.com on April 26, 2022.
Clive Maund has been president of www.clivemaund.com, a successful resource sector website, since its inception in 2003. He has 30 years' experience in technical analysis and has worked for banks, commodity brokers, and stockbrokers in the City of London. He holds a Diploma in Technical Analysis from the UK Society of Technical Analysts.
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The above represents the opinion and analysis of Mr. Maund, based on data available to him, at the time of writing. Mr. Maund's opinions are his own, and are not a recommendation or an offer to buy or sell securities. Mr. Maund is an independent analyst who receives no compensation of any kind from any groups, individuals or corporations mentioned in his reports. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund's opinions on the market and stocks can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction.
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1) Clive Maund: I, or members of my immediate household or family, own securities of the following companies mentioned in this article: None. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None.
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