Golden Agriculture: Stay cautious.

Golden Agriculture's share price made a successful attempt in recovering lost grounds as price opened at 57c and closed at 58c, forming a white candle on rather low volume in the last session.  Given the lack of enthusiasm in the upmove, one wonders if there would be a follow through which would see the 20dMA at 58c taken out as the immediate resistance.

The MACD continues to move lower after completing a bearish crossover with the signal line. MFI and RSI have both formed higher lows which is encouraging.  OBV is flat.  Technically, there isn't any clear direction.

Fundamentally, CPO price has stayed above RM2,700 and Golden Agriculture should be a strong beneficiary of this.  However, with the recent bad press and uncertainty as to whether things would worsen, it might be better to err on the side of caution and to stay sidelined. Support provided by the 100d and 200d MAs could be a better entry point and that is currently at 55c.

Related post:
Golden Agriculture: Unable to break out.