RC365 (LON: RCGH) share price has rebounded strongly after weeks of downtrend. The shares of the fintech firm are changing hands at 40p on Wednesday. However, it is too early to call this bounce a bullish reversal as the stock remains in a downtrend on a higher timeframe.
On Wednesday, RC365 shares were up 8.2%. The positive price action came after a 23.91% decline in the last trading session. The benchmark FTSE 100 index also gained 13 points today as the energy companies extended their gains.
RC365 Holdings has recently signed a deal to acquire the intellectual property rights of the AI platform built by YouneeqAI Technical Services. The agreement would enable RC365 to market, distribute, and resell the AI services being offered by YouneeqAI.
RC365 share price is currently trading 77.6% below the yearly high of 180p. Due to the AI hype, it has become one of the most volatile stocks. The shares exploded in June 2023 when the stock was trading at 25p. However, after its 180p peak in July 2023, the stock entered into a very deep correction.
The latest analysis of LON: RCGH reveals that the price has bounced off the April 2022 high of 30p. This means that the 16 months old resistance level is now acting as a support level. Bulls need to hold this level, or RC365 share price forecast will turn very bearish.
Another key level to watch is the 200-day moving average which currently lies at 43.6p. A reclaim of this level may push the stock towards the 85p resistance level. However, it is too soon to discuss such a move as the price is still trading well below the weekly highs.
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This post was last modified on Sep 13, 2023, 16:44 BST 16:44