Golden Agriculture: Sell down,

In my post on Golden Agriculture yesterday, I said that "Although volume expanded today, a case could be made that we are seeing a negative divergence with price.  Just keep this thought handy."

Golden Agriculture started the day at 60c to hit a high of 62c before retreating to close at 58.5c on high volume.  This is where we find the downtrend resistance which was overcome yesterday.

OBV has turned down which confirms that distribution is taking place.  However, the MFI is now higher than the previous high.  This hints that demand continues to be strong and there are buyers waiting to collect at lower prices.

Could 58.5c now serve as support?  It could but we need confirmation.  A stronger support is at 55.5c, as provided by the 100dMA.

Related post:
Golden Agriculture: Downtrend broken.