The price for Renergen has been in a downtrend since rejection on the upper resistance of the broadening wedge. Ideally price must find support at the lower support trendline in blue. This should give price a good bounce initially to more than R30 or some 40% capital gain where profit can be harvested leaving some capital invested with increased price action monitoring. Recent volume shows capitulation which is somethin you always want to see near the bottom or turning point.
Risk: If the broader market turns downwards then Renergen risks falling out of the broadening wedge preparing price to visit the pre-covid levels. These risks will be assessed into 2023 with updates.
Risk: If the broader market turns downwards then Renergen risks falling out of the broadening wedge preparing price to visit the pre-covid levels. These risks will be assessed into 2023 with updates.
Note
REN has closed the gap from 18 October 2021, now watching price action as these are potential price reversal zones. Long-term holders would not have a problem scaling in here, a touch of the blue trendline is less than 3% drop in price.Note
Renergen has well fallen out of the broadening wedge, the week ending 10 March 2023 is of interest, previous 2 weekly cycles were 41 weeks long, next week is 41. As per the main idea, harvesting profit around R30 was worth it, the capital can be redeployed while lessening loss from the current down trend. Taking profit is good for one's sanity especially avoiding regret.Note
Renergen is now on week 49 still seeking a weekly cycle low & yearly cycle low. There is a higher probability we print a weekly low if we can put a double bottom confirmation as well as a swing low. On daily time frame we are on day 63, a time window for a daily cycle low.Note
Renergen managed a double bottom and a swing low, set a daily low on the day 63. As can be seen, weekly & yearly lows have violent moves to the upside, Renergen is up 22% in 2 weeks. We can expect some consolidation here to cool the indicators before breaking out above resistance.Trade closed manually
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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.