Renergen Update

What is next?? Technical Analysis

What is next??

This is an update from my first article on the stock :https://finmeup.app/post/817902c6-ad33-42a3-98f3-758a091010ed

Renergen (RLT) on the Australian market closed 7.41% lower at A$2.50/share. Using the spot rate of R11.88/A$ the closing price is equivalent to R30/share. The Chart on left is Renergen listed on the Australian market.

Renergen (JHB) Closed the Tuesday session 2.72% lower at R31.47/share, after testing a session low of R30/share. The Chart on the right is Renergen listed on JSE.

The major drop on the stock is rather shocking for most Investors as it comes two weeks after a major announcement of the Virginia plant being operational. Most anticipated a sustainable trade above R40/share but market decided otherwise. The drop was rather rational than irrational as one may think. Everything recently announced (fundamentally) were already priced in months ago. 

The stock is however presenting a beautiful buying opportunity at current price levels. Renergen(RLT) is trading at a support/buy-zone as shown on the chart above. This is technically a crucial level  on the stock and we should expect some strong volatility around the level.

Renergen(JHB) tested and rejected at R30/share. This gives us a strong indication of the sensitivity of the R30 level as our support/buy-zone. Market is likely to retest the level a several times before we can get a rally to the upside. The level is a great first entry point for Investors that missed the stock on the first rally, and can possibly average down if it continues dropping to approximately R24/share (likelihood). 

Price Targets 

As previously mentioned, the stock is unlikely to trade and stay above R40/share in the year 2022. However, A rejection at R30 will leave room for a move to R33 and R36/share, respectively. The R36 level is a test to the trend resistance which market is likely to reject at. 

The foreseeable yearly high on the stock remains  R40/share.

Disclaimer: None of the information shared above constitute financial advise. The information shared is just a true reflection of the author's opinion and experience. Seek financial advice from a registered financial advisor.