GSS Energy potential inverse head and shoulder formation (13 Sep 17)
Since my write-up on GSS Energy (“GSS”) dated 18 Aug 2017 (see HERE), GSS’ share price has jumped 12% from $0.137 on 18 Aug 2017 to close at $0.152 on 13 Sep 2017. Based on my personal chart observation, it seems likely to be in the midst of forming a potential bullish inverse head and shoulder formation.
GSS has reclaimed its 200D exponential moving averages (“EMA”) within three trading days after breaching. It has subsequently moved back to its lower trading range of around $0.152. Based on Chart 1 below, there are certain noteworthy points.
a) Potential inverse head and shoulder formation
GSS seems to be forming a potential bullish inverse head and shoulder formation. For the potential inverse head and shoulder formation to be formed, GSS has to breach the resistance area cum neckline of around $0.154 – 0.157 with volume expansion and on a sustained basis. A confirmed break above $0.157 points to an eventual measured technical target price of around $0.186. Thir represents potential and may, or may not be reached.
b) Indicators are strengthening
Despite the recent plunge from 20 Jul 2017 to 18 Aug 2017, 200D EMA was not greatly affected and continued its steady ascent. 20D EMA has also reversed trend and started to climb. Other indicators such as MFI, MACD, OBV and RSI have started to strengthen too. These bode well for the chart.
Near term supports: $0.151 / 0.148 / 0.145
Near term resistances: $0.154 – 0.157 / 0.161 / 0.165
Chart 1: A potential bullish inverse head and shoulder formation
Source: Chartnexus 13 Sep 2017
The above is based on my personal observation on GSS’ chart. Readers are advised to refer to GSS website HERE and SGX website for more information. There are always risks involved in trading.
P.S: I am vested.
Please refer to the disclaimer HERE