Golden Energy and Resources Ltd (SGX: AUE) A possible bearish reversal after reaching the bearish rising wedge resistance as:   

1. The formation of a bearish engulfing candlestick pattern on 28 September coupled with a shooting star candle which rejected the upper Bollinger Band 2 days ago in a bearish rising wedge provides a bearish signal for the downside to continue.
2. The Moving Average Convergence Divergence (MACD) technical indicator also points towards a bearish downside as it is displaying an increase in bearish momentum, where the MACD line rejected a crossover of the Signal line.
3. The price could reach the support zone at 0.625-0.675 which is confluence of 50% Fibonacci retracement level support at 0.635, with the swing high of 0.850 and swing low of 0.420 as points of reference. A breakdown of the rising wedge pattern also presents a target of 0.635 using the swing high of 0.850 and swing low of 0.710 in the wedge measured against the trendline support at 0.775.

*Expected timeline of the trade is 13 weeks from the date of report issuance.

CHART LEGEND

Red box = Resistance zone

Green box = Support zone