The HCMC is yet another penny stock. The price maintains a very stable range between $0.0001 to $0.0003. This rangebound behavior has remained in action since December 07, 21. However, the stock has been in a broad downtrend clearly visible from its daily chart. The 20, 50 and 100-day SMAs remain in confluence around the price as the stock is stable and does not show much volatility.
The stock found an all-time high of around $0.0065 in Feb 2021, and the price has constantly been falling since then. The price maintains a range, stays in it and then falls further and forms another range. Due to low volatility, the price range is quite tight. Hence, it gives very few trading opportunities.
Overall, the market sentiment is not favorable for the company. As a result, the buyers have been struggling to hold. Some expect the price to gain extraordinarily in the future. Hence, they tend to average their buying positions with more buying on the dips.
The company’s earnings report is due on 10 May 2022. The company is expected to record losses in its earnings report. Moreover, the historical data reveals that the earnings report has always resulted in further fall in prices.
Therefore, it is not prudent to buy this stock now. Rather, one should wait for a clear reversal sign. On the other hand, one can buy at the lower end of the range and sell around the upper range.