Geo Energy Ltd – Daily timeframe (Update from 1 August 2017)
*Entry Price: 0.300 Stop loss : 0.225 Take profit : 0.350
Current Sentiment: Bullish
Support 1: 0.265 Resistance 1: 0.300
Support 2: 0.235 Resistance 2: 0.325
Price spiked substantially higher after the last update but failed to hold onto the gains. A correction ensued, taking price back down to the 0.240 support area. However, the subsequent rebound off the 0.240 support area since 04/09/17 further proved the validity of 0.240 range low as a sturdy base for the long-term uptrend.
Moreover, the immediate trend has also turned up as suggested by the 20 day moving average crossing above 60 day moving average on 02/10/17. There seemed to be a pick up in interest lately shown by the growing volume since 19/10/17 after price broke above the downtrend line. With the current bullish breakout above the 0.280 immediate range high with increasing volume on 23/10/17, we should expect the next leg higher to begin.
Expect the current bullish momentum to sustain for price to break above the 0.300 immediate resistance area to target 0.325 resistance area followed by 0.350.
Note: Our current fundamental view on Geo Energy is a Buy rating with a fair value of $0.450.
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