RC365 (LON: RCGH) share price has performed extremely well in 2023. After remaining sideways for five months, the stock of the fintech solutions provider suddenly went ballistic in June 2023. Since June 16, the shares have soared 567%, which makes it one of the best penny stocks of 2023.
The rally in the RC365 shares is also fueled by the ongoing bullish sentiment in the UK and US equities. The FTSE 100 index has rebounded strongly and now stands above 7,600 points. The shares of RC365 Holding plc are up 8.82% till press time.
Why Is RC365 Share Price Rising?
The shares of the Hong Kong-based payments gateway provider were listed on London Stock Exchange in March 2022. The IPO was priced at 6.2p per share and helped the company to raise £2 million. The stock kept rising steadily after its IPO despite a downtrend in the UK stock market.
In June 2022, RC365 share price went for a parabolic run as the firm announced a non-binding MOU with London-based Hatcher Group Ltd for AI. Due to the prevailing narrative of Artificial Intelligence in the markets, this news was taken very positively by investors. Consequently, the stock is now trading more than 20 times above its IPO price.
RC365 Share Price Long-Term Forecast
It is too soon to predict the future valuation of a tech company like RC365 Holding plc. The company has most of its operations in Asia and is now looking to expand in the UK. After a massive parabolic run, it is better to wait for a major pullback than buy at the top.
Considering the bullish momentum, the RC365 share price forecast is looking bullish for at least the short term. However, indicators like the Relative Strength Index (RSI) and Money Flow Index (MFI) are already showing bearish divergences and stand overbought. Therefore, I won’t be buying this stock at its current price.
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