Renergen with probabilities of a rise before free falling.
The last time we looked at this instrument was in August 2023 when it was predicted that price may fly or decide to take a dunk to levels around R9.50 to cover the right shoulder downward-projection of the "Head and Shoulders" pattern that was painted if it breaks the neckline. Price proceeded to impulsively break the neckline towards the end of September 2023 and went on a free fall to find support around R9.00 in October 2023.
Looking at current price action, the instrument has since been creeping to retest the broken neckline but it is worryingly doing so in what seems to be developing into a bearish flag which if validated could see price tumble from R17.80~ R19.70 where there is strong supply, all the way down to the lows painted between April and September 2019 resting around the R6.90~R7.50 zone.
Over the coming trading periods, we may possibly see buyers sitting at the mini-demand zone between R11.50 ~ R12.80 taking price over a +38% sprout back to the strong supply zone around R17.80 ~ R19.70 (Which is also where price will meet the 50 Week EMA as the instrument has been trading well below it).
Long term investors will want to see this supply zone being overcome and price holding steadily above R19.70. Should this supply still show that the Bears are not in hibernation, a free fall to R6.90 ~ R7.50 will be on the cards. A strong slip below these levels could place the instrument at risk of future liquidation as it would be chasing the downward projection of the heigh of the Head from the H & S pattern that terminates well below "Penny Stock" levels.
It must be noted that a slip below R11.50 before sniffing the R17.80 ~ R19.70 zone could signal possibilities of bottoming out at R9.00 before a move higher.
Current sentiments: NEUTRAL, with short-term bullishness coming with a test and confirmation of R11.50~R12.80. Long term bullishness will step in with a successful test and confirmation of levels around R9.00 if we slip below R11.50 before reaching at least R17.80.
Looking at current price action, the instrument has since been creeping to retest the broken neckline but it is worryingly doing so in what seems to be developing into a bearish flag which if validated could see price tumble from R17.80~ R19.70 where there is strong supply, all the way down to the lows painted between April and September 2019 resting around the R6.90~R7.50 zone.
Over the coming trading periods, we may possibly see buyers sitting at the mini-demand zone between R11.50 ~ R12.80 taking price over a +38% sprout back to the strong supply zone around R17.80 ~ R19.70 (Which is also where price will meet the 50 Week EMA as the instrument has been trading well below it).
Long term investors will want to see this supply zone being overcome and price holding steadily above R19.70. Should this supply still show that the Bears are not in hibernation, a free fall to R6.90 ~ R7.50 will be on the cards. A strong slip below these levels could place the instrument at risk of future liquidation as it would be chasing the downward projection of the heigh of the Head from the H & S pattern that terminates well below "Penny Stock" levels.
It must be noted that a slip below R11.50 before sniffing the R17.80 ~ R19.70 zone could signal possibilities of bottoming out at R9.00 before a move higher.
Current sentiments: NEUTRAL, with short-term bullishness coming with a test and confirmation of R11.50~R12.80. Long term bullishness will step in with a successful test and confirmation of levels around R9.00 if we slip below R11.50 before reaching at least R17.80.
Trade active:
We slipped below R11.50 before reaching R17.80 and beautifully bottomed out around R9.00 levels. Strong possibilities of major moves to the upside going forward.
