Breaking key resistance — could $BGM repeat $RGC’s 100x rally?Let me introduce a stock that has already generated a profit of nearly 40% and I have no intention of selling it yet. Because both the chart and fundamentals suggest the stock seems to be approaching the point of potential explosion, and it is even possible to increase several times.
This stock is NASDAQ:BGM , a traditional Chinese pharmaceutical chemical company but now it has transformed into an AI productivty platform. More on that later—let’s first take a look at the technicals, which I always pay close attention to.
Firstly，the uptrend remains intact.
Since last year’s stock split, the price has been climbing steadily within a clear uptrend. After breaking above $8.50, it has consistently held above that level for months, showing strong momentum. (I bought in when it dipped back to $8.50 earlier this year and have held since.)
In the recent days, the stock price has successfully broken through the upper limit of the consolidation range that has persisted for nearly 3 months, and has stabilized above $12.
This is a significant breakthrough, and it may indicate that the stock price could potentially start a significant upward rally at any time.
Secondly，the stock is almost fully controlled by the market maker.
There’s a saying in trading: “Volume precedes price.” Since December 2024, BGM’s trading volume has clearly increased, with each spike in volume followed by a small price uptick—money was buying.
Interestingly, each rise is followed by a pullback, but on much lower volume. This volume pattern—rising on gains and shrinking on pullbacks—suggests that the maket maker have accumulated most of the shares and now have strong control. The dips are likely just shakeouts to flush weak hands before a bigger breakout.
Thirdly, low short interest means minimal resistance to a price surge.
According to Nasdaq's data, BGM’s short position was 34,466 shares by 31th March, but dropping to 18,889 shares by April 30,the number of short positions has significantly decreased.
This was showing that as the stock price rose, short sellers mostly exited or turned bullish—clearing major obstacles for further gains.
Technically, everything is set—just waiting for the trigger. Pull the trigger could spark a massive rally, and that trigger may come anytime as the company nears to complete a key transformation.
Yes, the company is transforming from a traditional pharmaceutical firm into a leading AI tech ecosystem. Since last year, it has been actively acquiring companies to enter AI-driven healthcare, insurance, and wellness sectors, aiming to become an industry leader.
①In December 2024, BGM acquired RONS Tech and Xinbao Investment, integrating the AI insurance platform “Duxiaobao” (powered by Baidu’s NASDAQ:BIDU technology). Leveraging 704 million monthly active users, they aim to disrupt traditional insurance sales and drive exponential customer growth.
②In April 2025, BGM acquired YX Management to boost AI applications in insurance and transportation, accelerating the “pharma-insurance-health” ecosystem.
③In May 2025, BGM acquired HM Management and its two subsidiaries—SHUDA Technology and New Media Star—strengthening its algorithm optimization、data modeling and traffic-driven customer acquisition capabilities
After several acquisitions, the company has initially completed its transformation plan. So the "trigger" we are pursuing might emerge during the next major acquisition by the company to complete the final transformation.This is an important milestone. According to reliable sources, the company's next acquisition is likely to take place in the coming June. Let's wait and see.
Another "trigger" may be the company’s next earnings report, which will include the “Duxiaobao” AI insurance business for the first time, expected to add over $5 million in revenue, might to confirm the initial success of the company's transformation. And this is potentially spark a strong stock rally.
These two potential "triggers" are both approaching soon.
If all goes well, how far could this rally go? Let’s refer to the recent strong gains of Chinese stocks like $RGC.
Technically, RGC saw a clear volume increase and price rise around July-August 2024. Then it had a six-month shakeout with low volume pullback (similar to BGM’s current pattern). In March 2025, it launched a major rally, rising over tenfold.
In May, RGC surged again, supported by fundamental news: the company announced FDA approval for its new neurostimulation chip and a Parkinson’s study with Mayo Clinic. From the start to the peak, RGC gained over 100 times in a short period!
Looking at BGM again: after the breakout, the stock will likely first test resistance near $15, which may not be a big hurdle. The real test could be at $24—the pre-split high and the upper boundary of the current “megaphone” consolidation.
Even if the price only reaches around $24 , current investors could nearly double their money. After the company’s fundamental transformation, its revenue and profits potential could grow beyond RGC. So, how high can BGM’s stock go? Let’s wait and see.
