Should I wait for the stock split to buy in and wait for the price to stabilize at $476.65

Symbols

6/5/2025 11:16am

Aime

The deep research logic is organized as follows: 

Okay, let's tackle this question. The user is asking whether they should wait for Regencell Bioscience's (RGC) stock split to buy in and wait for the price to stabilize at $476.65. 

First, I need to gather all the relevant information from the provided references. The stock split is a 38-for-1, effective June 16, 2025. The user is interested in technical analysis and short-term investments, so the focus should be on how the split affects the stock's price, liquidity, and potential entry points.

Looking at the references, the stock has had a massive rally, with a 14,899% YTD gain. The split is intended to boost liquidity and accessibility. The user mentioned a specific price level of $476.65, which seems to be the 20-day moving average as of June 4, 2025. The user is considering waiting for the split to see if the price stabilizes around this level.

I should check if there's any data on historical price stabilization after similar splits. However, the references mention that the query for historical patterns after 38-for-1 splits has 0 results. So, there's no direct data to reference here. But the split itself is a significant event that could cause volatility. 

The user's profile shows they follow stocks like SUPX, LYRA, which are speculative and high-volatility. They prefer technical analysis, especially candlestick patterns, and are looking for short-term opportunities. The split might lower the price per share, making it more accessible, which could attract more retail investors and increase liquidity. 

The current price is $630.1, and the 20-day MA is $476.65. The user is considering waiting for the price to drop to this level post-split. However, the stock has shown extreme volatility, with a recent drop of 25% after hitting $950. The split could either stabilize the price or cause further volatility as new shareholders enter the market.

I need to consider the risks. The company has no revenue, negative cash flow, and no FDA approvals. The high short interest (2.33% of float) suggests potential short squeeze risks. The technical indicators as of June 4 show RSI at 54.18 (neutral), MACD at 25.15 (bullish momentum), and Bollinger Bands at $476.65 (price above midline). 

The user's strategy should align with their risk tolerance. Since they're moderate, waiting for stabilization post-split might be safer. However, the split could also be a catalyst for another rally. The user should set clear entry and exit points, perhaps using the 20-day MA as a support level. 

I should structure the answer to first present the conclusion, then break down the analysis into sections: the split's impact, the 20-day MA as a target, risks, and a tailored strategy. Make sure to include the visualization for the stock split query and reference the data points correctly.

Conclusion
Yes, waiting for the stock split and price stabilization at $476.65 could be a prudent strategy for a short-term, speculative play on Regencell Bioscience (RGC). Here’s why and how to approach it:

📊 Key Analysis

1. Stock Split Impact

Effective Date: Trading begins on a post-split basis on June 16, 2025 ¹².
Price Adjustment: The stock price will drop by a factor of 38, making it more accessible to retail investors.
Liquidity Boost: The split aims to increase trading volume and reduce volatility over time ¹².

2. $476.65: A Critical Technical Level

20-Day Moving Average: As of June 4, 2025, the 20-day MA is $476.65 ⁴.
Support Role: This level has acted as a bullish anchor during recent pullbacks (e.g., post-peak correction from $950 to $630) ⁵⁶.
Post-Split Catalyst: The split could trigger a retest of this level as new shareholders enter the market.

3. Risks to Monitor

Speculative Nature: RGC has no revenue, negative cash flow, and no FDA approvals ⁵⁷.
Short Squeeze Risk: High short interest (2.33% of float) ⁴.
Market Sentiment: The stock is highly sensitive to clinical trial updates (e.g., ADHD/ASD efficacy results) ⁸⁶.

📊 Why This Fits Your Profile

Speculative Interest: Aligns with your focus on high-volatility stocks (e.g., SUPX, LYRA).
Technical Focus: Clear entry/exit points based on moving averages and RSI.
Short-Term Horizon: Stock split and clinical trial catalysts offer quick upside potential.

📊 How to Approach It

1. Entry Strategy

Wait for Post-Split Stabilization: Hold off until June 16, 2025, when trading begins on a split-adjusted basis.
Target Price: Enter when the price stabilizes near $476.65 (20-day MA).
Breakout Target: Aim for $950 (all-time high, June 2, 2025).

2. Risk Management

Position Size: Allocate ≤5% of portfolio to align with moderate risk tolerance.
Stop-Loss: Set at $400 (below 20-day MA) to limit downside risk.
Exit Plan: Sell if price drops below 20-day MA or RSI falls below 30 (oversold).

3. Key Indicators to Watch

Metric	Current (June 4, 2025)	Post-Split Target
RSI	54.18 (neutral)	30-70 (balance)
MACD	25.15 (bullish)	Cross above zero
Bollinger Band	$476.65 (midline)	Price above midline

📊 Final Call

RGC is a high-risk, high-reward opportunity. Waiting for the stock split and price stabilization at $476.65 offers a safer entry point, but stay vigilant for market sentiment shifts and clinical trial updates. 🚨

Source:

1. Regencell Bioscience Announces 38-for-1 Stock Split to ...