SGX Shares Movements: GSS ENERGY IS POTENTIALLY BULLISH

Since my write-up on GSS Energy (“GSS”) dated 18 August 2017 (see HERE), GSS’ share price has jumped 12 percent from $0.137 on 18 August 2017 to close at $0.152 on 13 September 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.

Chart outlook

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 to $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. This represents potential and may, or may not be reached.

b) Indicators are strengthening

Despite the recent plunge from 20 July 2017 to 18 August 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

Source  - sharesinv