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home » small cap highlights
Tony Golan
Chief Technical Analyst
StockProfit.com™
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This week I chose to highlight the chart of Royal Quantum Group, Inc. (OTCBB: RYQG). RYQG is starting a strong new long-term up-trend. The stock is making higher highs and higher lows above a rising 200-day moving average (the red line on the chart above). Relative Strength Differential (RSD), our proprietary indicator for selecting stock in super-strong up-trends, is way above the 25% threshold line, indicating RYQG is in an up-trend much stronger than the S&P and is therefore likely to continue trending higher.
RYQG started the current long-term up-trend when it hit a low of 0.16 in mid-February. From there, RYQG rallied straight to a new high of 0.65 in late March. RYQG then corrected, made a higher low of 0.35, and turned back up sharply with good volume.
Following this correction, RYQG is now likely to resume the up-trend and rally to another new high. If it can't do that and it now comes back down and closes below this most recent low of 0.35, it will invalidate the up-trend and indicate the stock is most probably going back to the 200-day moving average, currently at 0.23.
Tony Golan
Chief Technical Analyst
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