Real Brands Inc (OTCMKTS:RLBD) has broken out of a tight trading range after a slow start to the year that saw it languish at all-time lows in the market. However, a 150% plus rally in October has come at the back of on no solid news.
Real Brands Price Analysis
The stock has also rallied by more than 700% since the start of September, as the upward momentum continues to gather pace. The stock is currently flirting with two-year highs and showing signs of cooling down. RLBD Daily ChartA closer look at the chart above it is clear that the stock faces immediate support at the $0.06 mark on any pullback. The stock breached this resistance level early in the month before skyrocketing to current record highs.A breach of the support level on any sell-offs would leave the stock vulnerable to further declines, back to the $0.04 mark, seen as the next support level. Above the $0.10 mark, the stock looks set to continue powering high as bulls remain in firm control.
About real Brands
Real Brands Inc. casts itself as a brand building company with an interest in the legal cannabis and Hemp industry. Last year the company carried out a string of acquisitions as it sought to strengthen its prospects in the burgeoning multi-billion industry.
Vape Cartridge Business
There is still a wave of uncertainty over the catalysts behind the recent spike in trading activity. For the better part of the first half of the year, Real Brands remained subdued at the $0.01 mark. The reduced trading activity was as a result of the company failing to issue substantial news and updates needed to gauge the company’s long-term prospects.While nothing has changed, the stock continues to break every resistance level on its way to record highs in the market. The last piece information about the company’s operation came late last year when it emerged the company had licensed the CBD Pharmacy trademark for the sale of Vape Cartridges.
“We are excited to have the opportunity to license the CBD Pharmacy® trademark to Dragons, Ltd for immediate sale of Vape Cartridges. This partnership will enable us to quickly establish the CBD Pharmacy® brand into the legal hemp and cannabis industry while allowing us to focus more time on the Omega Hemp Water® brand as we explore additional branded opportunities,” said CEO Jerry Peering, CEO at the time.
The management at the time reiterated that they were on course to generate royalty income from the licenses, before the end of the year. The Chief Executive officer also made it clear that they were in the process of exploring other CBD Pharmacy branded legal hemp and cannabis consumer products as part of the licensing agreement.In 2017, Real Brands also completed the acquisition of four U.S Utility patents as part of its push for opportunities in the cannabis sector. The patents were for the manufacture of consumable legal cannabis as well as hemp products. The company also acquired four additional Colorado trademarks for Marijuana Cigarettes as well as Cannabis Cigarettes, Hemp Cigarettes, and Cannabis Smoke Tobacco.Early this year, Real Brands successfully launched CBD Vape Cartridges in Texas and Florida. Orders and reorders at the time were so high that the company had to ask Dragons Limited for addition inventory worth $100,000 to cater for growing demand.
Bottom Line
A recent spike in Real Brands trading activity comes at a time when the overall cannabis sector has turned bullish. Recreational use legalization in Canada is one of the developments that appear to have strengthened investors’ confidence about pursuing opportunities in the industry.The fact that half of U.S states, as well as Canada, have legalized recreational use essentially presents a huge target market that the likes of Real Brands can target in addition to the medical marijuana market. The company is increasingly positioning itself to reap from the growing consumer awareness, depicted by its pipeline of products and licenses it continues to sign.The current spike in share price is one that calls for a little bit cautious when it comes to pursuing opportunities in Real Brands. Taking into consideration recent price action activity, it might be wise to wait for further pullbacks to buy on the low, rather than buying at current highs. It might also be wise to wait for further confirmation on the catalysts behind the upward momentum.We will be updating our subscribers as soon as we know more. For the latest updates on RLBD, sign up below!Disclosure: We have no position in RLBD and have not been compensated for this article.
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