Aggressive stance on RHW.Goals 2.50, 2.54.
We are not in the business of getting every prediction right, no one ever does and that is not the aim of the game. The Fibonacci targets are highlighted in purple with invalidation in red. Fibonacci goals, it is prudent to suggest, are nothing more bdr
han mere fractally evident and therefore statistically likely levels that the market will go to. Having said that, the market will always do what it wants and always has a mind of its own. Therefore, none of this is financial advice, so do your own research and rely only on your own analysis. Trading is a true one man sport. Good luck out there and stay safe
RHE
The fundamentals of RHE have not changed...The fundamentals of RHE have not changed........I continue to see it as a strong MEM stock. One of the many characteristics of MEM shares is intraday liquidity. An elevated intraday trading volume should be quickly satisfied by market makers. In the event that this is not met for some reason, the price movement of the stock can suddenly take on extreme values. This is a fundamental characteristic of MEM shares. Market makers are required by their contract with the SEC to ensure market liquidity even if they run into certain constraints. What are these limits ? Not enough shares trading. What is the solution ? It has to be done. Suppose our market maker "A" receives a request to take a long position of 100,000 shares. At the opening, our market maker A has only 20,000 shares available for sale. What happens. Our market maker A starts making calls and tries to get 80,000 shares from other market makers. Market maker "B" comes forward and gives market maker "A" a contract to confirm the availability of the extra 80,000 shares at the opening of the trade. But the market maker "B" does not have 80,000 shares either. For the sake of example, let there be only 40,000. What happens next. The market maker B gives the 40,000 shares to the market maker A, but since he has agreed to confirm 80,000 shares, he goes to the market maker C and asks for confirmation of another 40,000 shares. This example could go on for hours. You have to see the point. A group of market makers can generate thousands of times the average daily turnover by certifying these round numbers. This is why a small public issue like RHE(1.7 million shares) can generate up to 40-50 million daily volume. It can be seen that it is not the trading volume of shares that is increasing, but the number of "paper certificates" behind them. Moving on. Behind the increased daily volume, there is also a true small presence of equity investors. They are not day traders. They buy shares for several months. These shares are excluded from the daily volume of publicly issued shares, leaving market makers with even fewer tradable shares. If we look at the chart, we can see that the second fractional wave although showing a similar percentage increase nearly doubled this is because the trades behind the second wave movement were now made with fewer real shares, instead the market makers used many more share certificates. These are building huge paper pyramids and by their very nature, extreme price rises and extreme price falls are to be expected. This brings us to MEM shares. In my opinion, there is nothing to fear from MEM shares, as extreme profits can be made through them, but as they have nothing to do with either corporate or economic fundamentals, they should be traded with due diligence.
RHE another significant(1000%) pulse increase.
RHE another significant(1000%) pulse increase. The RHE chart is a strong momentum rising price movement. I have written about the reason for this several times. The fundamental reason is the price formation of the brokerage firms quoting it. The RHE is a typical "meme stock", so it is unnecessary to look for an economic or other fundamental reason behind the movements. The company has a public float of nearly 1.7 million shares. A significant number of these are not in daily trading, as some investors temporarily withdraw shares from the market through long-term purchases or "desk drawers". Therefore, even with a medium daily trading volume, the system is not able to serve traders with shares. Large quantities of "digital shares" are then created, backed by the commitment of the issuing brokerage firms. For this type of share, there is a turnover of up to 40 million shares per day, with an actual daily turnover of no more than 3-400 thousand shares. With several brokerage firms committing to deliver "digital RHE shares" to each other, a huge pyramid scheme is taking shape. (To reassure you, the situation is similar for other low-cap stocks.) This is spectacular when there is a more pronounced movement, for example, in the upward direction. Traders taking short positions borrow from their brokerage firm early in their trading. This loan (when opening an RHE short position) is nothing more than a "digital RHE share claim" subscribed by another brokerage firm. So it is another loan. As these credits multiply within a short period of time, they create an immediate liquidity shortage in an established short loss position, which results in an immediate close out of the short position regardless of where the stop order is. This creates a forced liquidation spiral. Brokerage firms, in order to protect their own liquidity, immediately close short positions, pushing price movements to unbelievable heights. This can be seen on the RHE charts. It could be more than 100% in a few hours. This huge surge can be limited by the SEC regulation of 2010, which suspends trading for a short period of time in case of a 10% price movement. This is why we can continue to expect extreme rises in the shares of companies with small capitalizations and few public floats like RHE.
RHE is the $80 meme share. Let's start at the beginning. What is a meme share ? The meme share phenomenon is caused by groups of people on social media who are constantly taking long positions to raise prices. Since they are not backed by mutual funds or individual large investors, the sudden rise is followed by a slow fall. The meme stock phenomenon is triggered by a combination of factors. 1. Social media. 2. the SEC's SSR (Short Sell Restriction) regulation introduced in 2010. This means that if the price moves 10%, trading in the stock must be restricted or halted for a period of time. 3. Low public float. For RHE shares, this is crucial.
Let's continue along point 3. Low number of publicly issued shares. Stick with RHE shares. The number of publicly issued shares is 1.78 million. Ideally, this is the number of shares that could be freely traded on a daily basis. Equity investors and investment funds are not always intraday traders. Therefore they buy shares and hold them. This means that the number of shares that can be freely traded daily is reduced. In the case of the RHE, there are about 1.2 million shares held by shareholders and funds. This means that nearly 500-600 thousand shares are tradable without leverage in free daily trading.
Let's continue the argument.
At the start of each day's trading, contract brokers (brokerage firms) are responsible for providing liquidity for the shares they underwrite. But how, when only 500,000 shares are available in free float ?
THE FACT IS HERE. Only a fraction of RHE shares are being acquired (or not even that). Instead, they collect "bond paper" from RHE bond paper provided by other brokers. Now this sounds a bit odd and scary, but it has potential. For hard-to-get (RHE) shares, the market makers are not selling shares but "bond papers". In short, buy and sell obligations.
BUT WHO BENEFITS ? Primarily for traders opening LONG positions. Because they do not borrow money at the opening to sell the shares they hold at the entry price to buy them back at a lower price. Traders who open SHORT positions do not short shares at the outset, but "promises" by other price-traders.
MEM PARTICIPATION. Let's go back to the starting point. I have explained that traders opening short positions do not open positions in stocks, but in "bonds". The situation is complicated by the fact that the price maker opposite the trader did not make the bond himself, but probably also obtained it in the form of a bond from another broker.
THEREFORE, WE CAN SEE THAT THE DAILY TURNOVER OF A COMPANY WITH 1.78 MILLION SHARES (RHE) CAN JUMP UP TO 40 MILLION.
Short or Long ? As described above, short sellers take considerable risk from the outset. This is because the bond mountains can quickly collapse in the event of a sudden rapid rise, causing huge losses for short sellers. Under SEC regulations introduced in 2010, a 10% stock price move above the SSR (Short Sell Restriction) on the short side kicks in.
THE IMPACT OF SHORT SELL RESTRICTION ON SHORT-SHARES. Short sellers are among the first to see the damage of this regulation. Market makers are quick to liquidate short positions often not at STOP LOSS levels but much earlier, making the cost of entry for new short entrants much higher, often to the point where a short position that wins later can only bring a fraction of the initial risk.
WHO ARE THE WINNERS ? The initial risk of taking LONG positions is much lower in these cases. After all, their initial entry is not subject to borrowing. Of course, bad entry timing can weigh on traders who take long positions, but the resulting loss is a fraction of that of traders who hold short positions with credit already initially.
SUMMARY
MEM shares are one of the riskier parts of the stock market. But they are not to be feared, as they can yield higher, often unrealistically high, profits than anything else. But with this comes a much greater risk. Few companies with publicly issued shares can most easily bale into mem shares, so shorting them can be very risky and dangerous.
Finally, a brief analysis of the RHE. It can be seen that a near 4x accumulation range has built up and a further impulse rise is expected. Technically a target price of between 78-90 usd. I note that the target price I have indicated is exactly the same as the RHE target price (78usd) last issued by MARKETWATCH
Thank you for reading :)
RHE before the rise.RHE before the rise. I have already made several analyses on shares of Regional Health Properties Inc. I have explained why it meets the criteria to be considered a "meme stock". Those technical conditions have held since then. Currently, the price movement of the stock is in an accumulation range. In parallel, the current wave sequence is in a fractal relationship with the previous wave sequence shown in the chart. The rules of fractal formation hold continuously. Therefore, it can be assumed that another upswing may take place in the near future. The size of this upswing could be as high as 220%. Next target price : 36.76 usd
RHE to rise further.RHE to rise further. The analysis shows that the price movement is in an accumulation range. The current accumulation range is twice the height of the previous accumulation range (yellow square). This is the basic rule of the fractal. The conclusion is that if the accumulation range is twice the previous one, then the post-accumulation upward wave sequence must also be twice the previous one. This would imply that the target price for further uptrend could reach the usd 43 level.
$RHE Target 18.65 for 34.37% $RHE Target 18.65 for 34.37%
Or next add level is at 9.01
Looking good here on this short hold so far... if it goes the other way for whatever reason I will double position at 9.01
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On the far right of the chart is my Average (Grey) Current Target (Green), and Next Level to add (Red) Percentage to target is from my average.
I start every position with 1% of my account and build from there as needed and as possible.
I am not your financial advisor. Watch my setups first before you jump in… My trade set ups work very well and they are for my personal reference and if you decide to trade them you do so at your own risk. I will gladly answer questions to the best of my knowledge but ultimately the risk is on you. I will update targets as needed.
GL and happy trading.
NEW POSITION $RHE Target 18.65 for 34.37% $RHE Target 18.65 for 34.37%
Or next add level is at 9.01
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On the far right of the chart is my Average (Grey) Current Target (Green), and Next Level to add (Red) Percentage to target is from my average.
I start every position with 1% of my account and build from there as needed and as possible.
I am not your financial advisor. Watch my setups first before you jump in… My trade set ups work very well and they are for my personal reference and if you decide to trade them you do so at your own risk. I will gladly answer questions to the best of my knowledge but ultimately the risk is on you. I will update targets as needed.
GL and happy trading.
RHE before a significant rise.RHE before a significant rise. The analysis also shows that the price action is correcting back from a near 200% momentum rise. Its size is 61% of the momentum rise. It is also observed that there is a fractal relationship between the two wave sequences. So the size of the wave sequences in the second fractal is twice the size of the original fractal wave sequences. The analysis assumes that we may be in the middle of the second fractal build-up. This would imply that a further significant rise is still to come. This is what we are waiting for now. The target price for this could be : 43 usd level.
RHE accumulation with a 17% drop.
RHE accumulation with a 17% drop. A technical correction may be ahead for the RHE price movement. Nevertheless, there is no reason to panic. It can be seen that an accumulation range is being built. Its width could be twice the size of the previous accumulation fractal shown in the chart. The lower level of the correction could be around 14.60 usd. This is an additional 11% from the current level. I expect a very dynamic rise thereafter. The percentage size of the rise could be close to 200%. Therefore the next target price is : 43.16 usd
RHE What's next ?
RHE What's next ? Undoubtedly one of the most mentioned stocks on social media is Regional Health Properties Inc. One of the best performing stocks in recent times. What you see on the chart. Currently the stock is moving in an accumulation area. The magnitude of the 10% correction is not surprising, as on an uptrend the price movement is 8-10x that. If you look a little closer at the chart you can see that it is moving in an extremely regular way. We see the completion of a 3 wave sequence in the current accumulation range. It can also be seen that the rise may continue. This can be deduced from the phenomenon that the size of the first accumulation range (red square) and the second accumulation range (red square) are the same in percentage terms but double in points. This suggests a fractal. If we see the formation of a fractal, we can easily identify the target price for the second rise. Its value is 98 usd. Note that the fair value of the company's stock is 106.48 usd.
RHE ahead of a further 126% strength.RHE ahead of a further 126% strength. As can be seen from my analysis, two almost identical wave sequences appeared in the movement of the RHE. These are characterized by the second wave sequence having twice the amplitude of the first. This means that the second is a fractal of the first wave sequence. From this I conclude that a rising wave sequence is again formed, such that the rise now formed will be double the previous rise. Hence the target price : 45.35 usd
RHE Another accumulation, further rise.RHE Another accumulation, further rise. In previous analyses I have closely followed the price movement of RHE shares. My analyses are technical in nature, based mainly on wave sequence and fractal analyses, but also on the fair value of the company's shares. The fair values are above 78 usd and no decrease is currently in sight. Let us return to the technical analysis. Today we have a significant rise of almost 100%. If we look at the fair value, the shares are still strongly undervalued. Their upside potential could be significant. Today's major rise is followed by an accumulation phase ,with a bottom at 27% from the local peak. Therefore, 11.07 usd level could be the support level. From this level I expect further upside. The amplitude of the rising wave sequence is 153%. Therefore the next target price could be : 28.52 usd.
RHE 200% rise ahead.
RHE 200% rise ahead. If you look at the penny stock markets you can easily find several stocks that are poised for a significant rise. One of them is Regional Health Properties Inc (RHE). It can be seen to be slowly completing the construction of its second accumulation range and starting to rise further. To determine this rise, we apply the rule that the target price can be twice the accumulation range. In this case, we can expect a rise of almost 200% from the current level Target price : 12.55usd Here I would like to note that the fair value of RHE shares is 76 usd. Currently the shares are trading deep below their fair value.
RHE rally is coming.RHE rally is coming. RHE could clearly be the winner of Joe Biden’s finance package announced in days. In my previous analyzes, I have already written in detail what is the reason why the fair value of the company’s shares is very high (78 usd.) I expect the first wave of rise in the days to come. It can be seen from the figure that an upwardly increasing triple wave system is being built. The price movement is ahead of the 103% upside. The next target price is 11.89 usd
RHE before a 219% increase.RHE before a 219% increase. This analysis completed quickly. That is why we need to move on. The current analysis shows that a fractal structure is beginning to form. In terms of its characteristics, we can speak of a double fractal structure. The difference is that the fractals on my side are usually doubled in size. It is not uncommon (as can be seen in the present case) for the percentage of fractals to double. Why? This is observed for data streams where the so-called "measuring scale" is logarithmic. Because a significant proportion of exchange terminals use logarithmic vertical scaling, fractal duplication can occur in both percentage and size. At the same time it is a rare phenomenon. In our case, percentage fractal doubling is likely. Short. A rising wave sequence is built (green square 2x) for this target price of 16 usd.
RHE before 86% increase.RHE before 86% increase. It can be seen from the analysis that the price movement takes place above the wave axis. Therefore, I still assume that it can be used as a support level. Rising from this level, you can reach the first target price of 7.00usd. Consolidated at this level, the stock may face a further rise. RHE is a company with a steady income on a financially sound basis. Your debt is declining year by year. It does not operate with share issues (dilution). The number of their shares is unusually low, so the corporate value per 1 share is extremely high. The fair value of the shares (final target price) is 78 usd. This is confirmed by several analytical portals. For example, Wallmine or Simply Wall St.
RHE is a secret.RHE is a secret. Many yesterday watched in confusion as the technical rise of 848% in a matter of minutes. Then the SEC-initiated technical trading after the shutdown collapse. Let's start at the beginning.
On Dec. 10, I indicated in my analysis that a pulse wave rise is expected. The practice has developed on penny exchanges in recent years that it has been possible to trade well by shorting penny companies. Lots of short positions open. Did anyone notice that the number of shares issued by the company was 1.6 million? And the trade volume was close to 14 million? Apparently, a lot of equity leveraged short positions were involved in trading. Therefore, there were plenty of stop losses during the pulse rise. It all lasted until the SEC intervened. But what can come after the bloody past?
wallmine.com
If we look at the fair value of the RHE stock (1 year target price) the table shows the level of usd 78. From the current level of 2300% increase. What causes this high rating? Primarily the 1.6 million shares issued mentioned in my analysis, as well as the year-on-year declining debt. Also, the almost constant $ 150 million in revenue is not negligible.
They all tell me that the “RHE secret” isn’t really a secret, as apparently the company may see a steadily rising share price in the coming years. Therefore, it is time to take the fair value of the company’s shares seriously and build longer-term long positions.
RHE before 195% increase.RHE before 195% increase. It can be seen that the third impulse fractal has begun. The amplitude of the fractals is 364%. These trades are generated by so-called "pump and dump" traders. Apparently they took out the stock again. The ascending motion crossed the D1ATR axis (orange dotted line). According to my analysis, the exchange rate is turning north from this ATR axis and may start to rise sharply. The target price for the rise is 5.30usd.
RHE may start a 300% rise.RHE may start a 300% rise. The exchange is building a 1: 1 fractal. In case the analysis is correct, he has apparently begun his ascending career. It is worth mentioning that the stock is risky as it is heavily in the "pennytrade" category. In return, a significant return can be traded at a premium. Target price 6.34usd