Regenx Tech Corp. (RGXTF:OTCMKTS) is another stock that looks like it has a good chance of bucking the gathering meltdown in the broad market, which itself will be the product of continued rising rates as debt markets implode. A reason for this is that the company is indirectly a Precious Metals stock as it recovers Precious Metals, especially Palladium, and Platinum, from "end of life" products such as catalytic converters, and there should be no shortage of these around in the foreseeable future as ordinary motorists are either forced into electric vehicles or onto pushbikes.
This is a big and fast-growing market for as it says on the Homepage of the company's website, "Each four module Regenx plant can produce US$100 million in revenue when it is scaled to full capacity." So now we will proceed to look at the stock charts, which, as we will see, look most encouraging despite the grim outlook for the market as a whole.
On the 7-month chart, we can see that yesterday, the stock broke out of a parallel downtrend on the strongest upside volume since May and also that while this downtrend unfolded, the Accumulation line was trending steadily higher, pointing to an eventual upside breakout.
Other positive points to note on this chart are that the 200-day moving average is still trending steadily higher, which means that if the stock should continue to advance from here, its moving averages will quickly swing into a strongly bullish alignment; also momentum (MACD) is starting to look like it is moving into positive territory.
While the 7-month chart looks positive, it is on the 2-year chart that we can really grasp what is going on. On this chart, we see that a fine Cup & Handle base has built out since the middle of last year beneath a zone of significant resistance, following a severe decline, and this looks to be about complete.
Whilst the earlier drop in the Accumulation line was rather disconcerting, this indicator has been strengthening as the price has dipped back in recent months to complete the Handle of the pattern, which, of course, improves the chances of an upside breakout into a new bullmarket.
Zooming out again, we see on the 8-year chart that Regenx has been in a severe bear market from its early 2018 peak.
While we cannot be 100% sure that it won't be forced temporarily lower by a market crash, the pattern shown on the previous chart certainly suggests resiliency and a capacity to buck the general trend, and it is worth keeping in mind that even during the worst crash phases of major bear markets of the past, such as the 1929 crash, some stocks actually advanced.
Lastly, and more for the sake of curiosity than anything else, since technically it is almost useless, we will take a brief look at the very long-term chart going back to the year 2000.
On this chart, we see that overall, Regenx has been an appalling investment, having been trending lower most of the time, but that doesn't mean it will continue to be, and at last, it appears to be in the right place at the right time. The current price is less than 1% of the price at the peak back in 2000.
The conclusion is that Regenx looks like an Attractive Speculative Play here, with the capacity to buck the severe downtrend that is set to unfold across the broad stock market as the debt market implodes.
There are 380 million shares in issue, fully diluted, which is on the high side, but the company has been around for a long time, and this is well factored into the share price. The stock trades in reasonable volumes on the US OTC market, where limit orders should always be employed.
Regenx Tech Corp.'s website.
Regenx Tech Corp. closed for trading at CA$0.105, $0.08 at 2.15 pm EDT on September 26, 2023.
Originally posted at Clivemaund.com at 2.15 pm EDT on September 26, 2023
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The above represents the opinion and analysis of Mr. Maund, based on data available to him, at the time of writing. Mr. Maund's opinions are his own, and are not a recommendation or an offer to buy or sell securities. Mr. Maund is an independent analyst who receives no compensation of any kind from any groups, individuals or corporations mentioned in his reports. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund's opinions on the market and stocks can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction.