Date of Report: October 8, 2024
Broker Name: CGS-CIMB Securities
Company Overview
Geo Energy Resources Ltd is an integrated coal mining specialist. The company owns and operates coal mines, provides mine contracting services to third-party mine owners, and sells coal to both traders and export companies. It plays a vital role in the energy sector by providing essential coal resources for international markets.
Technical Buy Recommendation
CGS-CIMB recommends Geo Energy Resources Ltd as a “Technical Buy.” The stock has shown a strong bullish reversal, cementing an optimistic outlook.
Key Entry and Target Prices:
- Entry Prices: 0.305, 0.270, 0.220
- Support Levels:
- Support 1: 0.270
- Support 2: 0.225
- Stop Loss: 0.195
- Resistance Levels:
- Resistance 1: 0.300
- Resistance 2: 0.380
- Target Prices:
- Target 1: 0.380
- Target 2: 0.400
- Target 3: 0.430
- Target 4: 0.500
Technical Indicators
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Breakout from Falling Wedge:
The stock has successfully broken out of a larger falling wedge pattern, indicating a confirmed upside reversal in its price trend.
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Ichimoku Indicators:
Prices are currently trending above all the Ichimoku indicators, reinforcing the stock’s positive outlook.
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MACD/Signal Line Crossover:
A crossover has occurred at the bottom, with the histogram showing a positive trend.
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Stochastic Oscillator:
The stochastic oscillator confirms an oversold crossover, further supporting a bullish signal.
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Rate of Change (ROC):
The 23-period ROC is rising and has rebounded above the zero line, indicating positive momentum.
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Directional Movement Index (DMI):
The DMI shows that bullish strength remains valid, suggesting sustained upward movement.
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Volume Expansion:
The stock has seen a healthy expansion in volume, which is a positive sign of continued investor interest and trading activity.
Conclusion
Geo Energy Resources Ltd has displayed a strong technical reversal, supported by various indicators such as the Ichimoku cloud, MACD crossover, and increasing volume. The stock is poised for further gains, with multiple price targets set above its current levels.
