What will it take to reach 1000€? Will we ever see it?Had an interesting conversation in the comments of my last RHM analysis - someone pointed out that they see €1,000 for this stock. Since I haven’t covered a broader timeframe yet, I figured it was time to take a look. And to my surprise, he wasn’t entirely wrong… well, kinda.
Let’s break it down. RHM has been in a long consolidation (highlighted in grey), so this recent push to the upside shouldn’t come as a shock to anyone. But here’s where it gets interesting: we overshot the green structure by a lot - and that’s okay. Structures are allowed to extend beyond their original targets under certain conditions.
First, we need a fakeout in the opposite direction - which we got, marked by the red dot. The next key factor? Where the chart turns. That’s why I placed a line called “The Ceiling” at the -1.236 Fibonacci. Here’s the rule: if price expands significantly beyond The Ceiling, the GKL (red box) becomes invalid, meaning we can no longer use it as a safe level for long entries due to the high risk of slicing straight through it.
So what’s the play? The next few days are crucial. If RHM turns up around till €820, everything stays healthy and within a controlled correction, setting up a prime long opportunity. But if we keep pushing higher, the risk of major downside increases exponentially. Trying to catch a falling knife at that point is a death wish - investors should allocate margin accordingly to avoid liquidation.
