Trade of the Day

Geo Energy Resources Ltd (SGX: RE4)

(Current Price: S$0.310) – TECHNICAL BUY

Buy price: S$0.310     Stop loss: S$0.285 (-8.06%)     Take profit: S$0.340 (+9.68%)    

(1): Geo Energy Resources Ltd has consolidated in an ascending triangle, with the S$0.290 previous horizontal resistance from December last year to May this year now acting as a support which provides a bullish signal

(2): Both Moving Average Convergence Divergence (MACD) & Relative Strength Index (RSI) technical indicators are showing bullish momentum

(3): The Bollinger Bands are expanding after a contraction phase, which signals for increased volatility ahead with a potential breakout of the consolidation

Should the price breakout of the current consolidation, it could potentially retest the previous horizontal resistance level at S$0.340 from July to November last year, confluent with the projected S$0.030 expected move from the S$0.310 level using the height of the ascending triangle

Expected timeline of the trade is 1-4 weeks from the date of report issuance