Geo Energy Res Ltd – Daily timeframe (Update from 18 April 2018)
*Entry Price: 0.240 Stop loss : 0.205 Take profit : 0.300
*Geo Energy Res Ltd will be added to the Phillip 20 Portfolio once the trade is triggered
Current Sentiment: Bullish
Support 1: 0.215 Resistance 1: 0.265
Support 2: 0.210 Resistance 2: 0.300
The lack of bullish follow through after the last update resulted in price turning back down into the range shown by the highlighted areas. Price continued to consolidate between the 0.230 range high and 0.215 range low since 20/04/18. The noteworthy part was the strong support at the 0.215 range low area. There were two more tests of that level in May, and both were heavily defended by the bulls proving the 0.215 range low to be an important level that the market respects.
Since the bullish rejection off the 0.215 range low on 14/05/18, the bullish follow-through managed to break price above the 0.230 range high on 16/05/18 signals a reversal higher next. Moreover, the bullish break was backed by increasing volume that also closed above the 20 and 60 day moving average.
Expect price to rebound higher next once the bullish follow-through occurs for price to test the 0.265 resistance area followed by 0.300. The 0.215 range low should be the bottom for now.
Note: Our current fundamental view on Geo Energy Res is a Buy rating with a fair value of $0.47.