Renewable Energy and Power Inc (OTCMKTS:RBNW) is a potential breakout play going by recent price action activity. After rallying by more than 900% to one-year highs, the stock did pull lower, from where it is once again showing signs of edging higher, in continuation of the emerging uptrend.
The spike has come on huge turnover of traded shares an indication of growing market interest. The spike occurred at the back of one of the longest period of consolidation at all-time lows as the stock continued to struggle for direction.
A spike to the $0.10 level attracted some selling pressure, which might be as a result of investors taking profits after the blockbuster move higher. After the recent pullback, the stock appears to have found support at the $0.04 level from where a potential bounce-back could be brewing.
A rally followed by a close above the $0.05 level could elicit further buying pressure that could result in Renewable Energy and Power making a run for this year highs. Conversely, failure to take out the $0.05 technical level could leave the stock susceptible to further drops probably back to this year lows.
What Does OTCMKTS:RBNW Do?
Renewable Energy and Power is engaged in the development and commercialization of LED light fixtures and components. Through its LED Lites USA division, the company develops grow lights used in farming. In the recent past, the company has expanded its footprint into the CBD cannabidiol products market. Its products are currently being used for the extraction of CBD for hemp biomass.
Renewable Energy and Power explosive run in the market comes hot on the heels of the company affirming its entry in the lucrative CBD industry. Early this year the company confirmed the signing of an agreement with vertically integrated Smart Green Tech.
Under the terms of the agreement the company was to purchase, Colorado grows and CO2 extracted distillate, for use in the development of a line of CBD and Cannabinoid products. The company has since formed a CBD division dubbed CBDHealth2u that is to spearhead its interests and prospects in the multibillion-dollar interest.
The new CBD division is tasked with the responsibility of selling at both wholesale and retail CBD isolate as well as distillates, vape cartridges, and throats spray as the company continues to expand its footprint in the industry.
Renewable Energy and Power has already secured a CBD supply agreement from Smart Green Tech paving the way for it to engage in large-scale production
“Renewable Energy and Power has expressed a vision for CBD health so unique that we could not pass up the opportunity to participate with our expertise in this project. We’re confident this collaboration will produce transformative and trendsetting products that can lead the industry,” commented Dorse DuBois, Smart Green Tech Vice-President.“
CBD Products Production
In a bid to shrug off stiff competition in the industry, the company intends to leverage the highest-quality CBD in its products and lowest cost structure.
Its CBD production resources include a Nevada based 6,000 square feet industrial and manufacturing facility. The company is also in the process of ramping up refining capacity ahead of the purchase of high-quality biomass supply.
“We believe our growing expertise in the CBD market opens an entirely new field of opportunity for RBNW. We intend for these new markets to significantly expand our business and profitability,” stated CEO Donald MacIntyre.
OTCMKTS:RBNW has taken the market by storm going by its performance in the second half of the year. While the spike has come at the back of no substantial new updates, it appears something might be brewing behind the scenes only known to insiders.
Amidst the blockbuster run, one cannot dispute the company’s tremendous potential. A diversified business portfolio leaves the company well positioned to pursue opportunities in various industries. The sale of LED lights to growing farms allows the company to continue generating significant revenues as more players enter the cannabis cultivation business.
Production of cannabis products should continue to diversify the company’s revenue streams as the company moves to meet growing global demand. Considering recent price action activity, the lows look to certainly be in on RBNW.
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Disclosure: We have no position in RBNW and have not been compensated for this article.