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This is a daily chart using the 200dEMA. The support provided at 66c didn't stand a chance and was shattered. Closing on high volume at 65c, the 200dMA at 63.5c could be tested next. If that breaks, we could see this counter's share price diving. Where would be the supports then?
One look at the chart suggests that supports could be found at 61c and 58.5c. 58.5c? Yes, that was where Golden Agriculture gapped up on 11 Oct 2010 and that gap could be covered eventually. Sounds horrifying for people who went long near the top? You bet.
What would I do if I were in their shoes? Well, prices go down a river of hope. Rarely do they go down in a straight line. There would probably be rebounds and when these happen, former supports would become resistance. Selling at resistance in a downtrend is the thing to do.
In the meantime, I will continue waiting for clearer signs of a reversal, if any.
Related post:
Golden Agriculture: In full retreat.
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