Herborium Group Inc. (Pink: HBRM) Is The Beating Over Yet?
Hola mi amors!
Remember last week when I said that I would be keeping an eye on Herborium Group, inc (Pink:HBRM) our ROACHY 1005% GAINER to see where it settles once the traders that were disappointed because it wasn’t news concerning China health resources (US OTC: CHRI) LOI to buy them out sold?
Here’s a refresher if you don’t remember or if you are new to the StockRoach blog.
“Well HBRM’s much touted BIG NEWS came out, and unfortunately it wasn’t quite the news that traders were expecting but a partnership with a booze company to market herbal vodkas might not be so bad. Flavored vodkas are very trendy so we will keep an eye on HBRM as the market digests the news.”
Well your Senorita has been keeping an eye on it, and while the stock closed down almost 21% during Monday’s trading, it is starting to feel a bit “bouncy” to me. The technical indicators are showing me that HBRM might be oversold and this could just be a huge market overreaction that needs a bit of a correction to the upside.
Let’s get something straight here first, there are rumors floating around that CHRI has pulled their offer off the table or that HBRM has turned the offer down. That is absolutely false information and neither HBRM nor CHRI has said anything along those lines.
Now that we have that cleared up I’ll get to HBRM’s techs right after this brief reminder!
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Now onto the techs for HBRM. Let’s pull up the oversold donkey chart:
Not the prettiest looking chart in the world because it has taken a beating harder than Rocky Balboa over the past week, but this is where us roaches see treasure where others see garbage. Look at the RSI line, once it hits under 50 it tends to have a bit of a bounce or what some might call, “The next leg up.” meaning a rise in the price.
The Money Flow Index and the Full Stochastic indicators are showing signs of HBRM being oversold as well. Keep in mind that HBRM has taken a 75% down beating so I would be really surprised if HBRM doesn’t get back up and fight just like Rocky Balboa especially since the fundamentals have not changed as far as I am concerned.
There is also a trader’s gap on the chart at the .01-.013 areas, and while not all trader gaps have to fill I personally think that HBRM has a good shot at filling it because it was an MM (Market Maker) drop in the PPS along with shorting. Yes you can short penny stocks you just have to know the right broker and have a good sized margin account.
There was also quite a bit of accumulation of shares during Monday’s trading from .0053-.006.
Support levels for HBRM are .0053 with lower level supports coming in at .0051 and .0045. Resistance lies ahead at .006, .0075 and .01.
Senorita “Someone hum that Rocky song for me” Roachita
These corporate profiles are provided for information purposes only and should not
be used as the basis for any investment decision. We are neither licensed nor
qualified to provide investment advice. We were not paid, nor do we hold a
position in these stocks. We reserve the right to buy or sell HBRM and CHRI at any time
after this post.
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