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Charts in brief: 16 Jul 10 (Part 1).

Friday, July 16, 2010

Golden Agriculture: Broke resistance at 55c and powered higher.  Volume almost quadrupled! If the momentum keeps up on Monday, we could see price attempt to go higher.  Beyond 57c, the next resistance is at 58.5c.  Support at 55c.

AIMS AMP Capital Ind. REIT: It is obvious that this counter is trapped in a range between 21.5c and 22c. I remember saying that if the MFI declines and price remains at 21.5c or higher, it is a good sign.  Good because it shows that there is a lack of sellers even as demand declines. Well, the MFI is now in oversold territory and price has stayed at 21.5c to 22c so far.  Of course, the MFI could stay oversold for a while more but if we look at the shorter term 20dMA and the longer term 100dMA, they have one thing in common.  They are both rising, if gently. When there are no more sellers at this level, we might see price rise to the next bracket.

CapitaMalls Asia: Looking somewhat precarious here. Prices are testing the support provided by the third fan line.  The uptrend has weakened from the initial fan line and it now looks exhausted. OBV shows clear distribution since price peaked on 23 Jun. From Monday to Thursday, volume expanded as price dropped.  Today, volume is lower and this is probably in response to the slightly oversold condition as suggested by the MFI.  Immediate support at $2.04 and immediate resistance at $2.10.  Closing below $2.04 in the next session would break the uptrend support and the price is likely to move lower from there.

Courage Marine:  The BDI's decline seems to be slowing but at 1,700, it is pretty darn low. From the RSI, it seems that the decline in price has some momentum.  However, the MFI has dipped into oversold territory and this might put a lid on selling although demand is obviously weak.  The OBV does not show any sign of strong selling. I did suggest that this counter's resilience stems from the company having a debt free balance sheet. In difficult times, companies with strong balance sheets are more likely to survive. Immediate support at 18.5c.  Strong resistance at 19.5c, which is where we find the confluence of the 20d and 200d MAs.

Related post:
Golden Agriculture: CPO price spiked 2.44%.


Anonymous said...

Hey AK! Just curious.

Regarding AIMS. Stochastics says it's overbought yet MFI says it's oversold. What is one to do? Or does one supercede the other?


AK71 said...

Hi K,

With volume so thin, the charts are not extremely reliable but we are only human.

The MFI could stay oversold for a long while more. Stochastics is usually telling in rangebound situation. So, I would pay attention to the Stochastics. For sure, it would be safer to get in when the Stochastics is in oversold territory. That's conventional wisdom. Would be nice to be able to accumulate again at 20.5c or so.

However, Mr. Market is, at times, rather perverse. ;)

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