Overview: Renegen Limited has recently made headlines by successfully bringing its liquid helium (LHe) production train online at the Virginia Gas Project in South Africa. This is a significant milestone, positioning the country among a select few capable of producing liquid helium for the global market. With the Phase 1 plant now fully operational and accumulating inventory for imminent sales, Renergen's fundamental outlook has improved considerably.
Technical Analysis:
🔍 Current Trend: The stock has been in a persistent downtrend since July 2022, forming lower highs (LH) and lower lows (LL). However, a recent change of character (CHoCH) near the Discount zone around 1,149 ZAR could suggest the beginning of a trend reversal.
💡 Key Levels to Watch:
Resistance: The Equilibrium level around 2,500 ZAR serves as a crucial resistance point. A strong break above this level with volume could signal a shift towards bullish momentum.
Support: The Discount zone between 1,250 ZAR and 1,750 ZAR acts as a strong support area where buyers have shown interest before.
Trade Idea: Given the promising fundamental developments and the technical setup, a potential long trade could be considered if Renegen breaks above the 2,500 ZAR resistance level. Targets could be set around the Premium zone between 3,750 ZAR and 4,200 ZAR, with a stop loss just below the Equilibrium level to manage risk.
Risk Management: The stock is still in a broader downtrend, so a cautious approach is advised. Consider waiting for confirmation of the breakout before entering the trade, and always manage your risk by setting appropriate stop-loss levels.
Fundamental Catalyst: The successful operationalization of the liquid helium plant and the upcoming sales could drive investor interest, leading to potential upside in the stock price.
Technical Analysis:
🔍 Current Trend: The stock has been in a persistent downtrend since July 2022, forming lower highs (LH) and lower lows (LL). However, a recent change of character (CHoCH) near the Discount zone around 1,149 ZAR could suggest the beginning of a trend reversal.
💡 Key Levels to Watch:
Resistance: The Equilibrium level around 2,500 ZAR serves as a crucial resistance point. A strong break above this level with volume could signal a shift towards bullish momentum.
Support: The Discount zone between 1,250 ZAR and 1,750 ZAR acts as a strong support area where buyers have shown interest before.
Trade Idea: Given the promising fundamental developments and the technical setup, a potential long trade could be considered if Renegen breaks above the 2,500 ZAR resistance level. Targets could be set around the Premium zone between 3,750 ZAR and 4,200 ZAR, with a stop loss just below the Equilibrium level to manage risk.
Risk Management: The stock is still in a broader downtrend, so a cautious approach is advised. Consider waiting for confirmation of the breakout before entering the trade, and always manage your risk by setting appropriate stop-loss levels.
Fundamental Catalyst: The successful operationalization of the liquid helium plant and the upcoming sales could drive investor interest, leading to potential upside in the stock price.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.