Having a quick look at the technical setup for RGI, i apologize for the chart being busy, however stick with me.
Looking at the daily setup, it looks as though we are a matter of days away from either a breakout of this pennant formation, which would open the door for a measured move of $0.16 and take us to $0.64 in the short term or, should this fail, a re-test of the $0.40 region once more, where the 200 day MA resides.
I like the fact that the share price is trading above the longer term trend line, however only just, so Iam not pinning my ears back just yet. MACD is giving us mixed signals, however is still positive above the 0 control line. RSI is trending sideways after coming down from recent over bought levels and the Stochastics have rolled over to the downside in the short term.
On the positive, there doesn't seem to be motivated selling pushing through the market and the stock price held up very well in the face of broader market volatility this week, however the iceberg seller at $0.47 is certainly holding back the price in the short term / until it's done. In the absence of a large buyer stepping into the market and hoovering up the stock, news flow of significance will be required to fuel the breakout to the topside and propel the price to the $0.64 price target.
RGI Price at posting:
47.0¢ Sentiment: Buy Disclosure: Held
