Renergen(RLT) closed -2.81% on the Australian market this morning, it is currently trading at A$3.11/share which is equals to R35.89/share using the market rate of R11.54/A$.
The stock is up 5.21% YTD and many believe it will end the year above R40/share. Here's what the charts are saying:
- The stock has created a head and shoulder at A$3.63 and it is currently trading at a neckline of A$3.11/share. A break below this level will drive price to the next support of  $A2.93 = R33.81/share. However, a completed head and shoulder should drive price to A$2.54 = R29.31/share.
- The stock is still trading on an uptrend, but it has already tested and rejected the trend resistance at A$4.09/share. It is looking to test the trend support at A$2.54/share as shown in the picture above, which locks in with the head and shoulder signal.
To be fair, The stock has had a nice rally-up, but no stock goes up forever. A sustainable close above R40/share by year end may be a little bit out of reality. Technical analysis is signalling some further downside. I have my eyes on R30/share.