Healthway Medical: Price levels to consider.

Selling most of my remaining shares in Healthway Medical at 15.5c resistance on 11 May instead of waiting to collect the 0.12c dividend turned out very well. Heatlhway Medical closed lower at 14c today. This is the support provided by the rising 200dMA which seems in danger of breaking as more than 20m shares were sold down at 14c today.

The MACD is still falling in negative territory.  MFI has been forming lower highs and OBV has been declining.  The technicals suggest continuing weakness. 

If the 200dMA is compromised, the longer term uptrend is in danger.  The previous bottom was at 13.5c.  This should provide some support.  If that gives, the candlestick resistance at 12.5c should become support.  12.5c was the resistance in a trading range which lasted for months and frustrated many. Price finally broke out of that trading range in the new year.  So, to me, 12.5c should be a strong support.  However, if price should fall back into that range, the support in the trading range is at 11c.

Many people remember the round number 10 and it was at 10c that I first started buying shares of Healthway Medical in mid 2009.  Will the price of Healthway Medical reach 10c again sometime this year? Personally, I rather doubt it but one never knows.  We can only wait and see.

Good luck to all who are still vested and good luck to those who would like to accumulate at lower prices.  Obviously, I am sitting on the fence.

Related posts:
Healthway Medical: A weak first quarter.
Charts in brief: 11 May 10.
Charts in brief: 10 May 10.

Charts in brief: 19 May 10.

The STI declined to test and break 2,780 today. We will have to see if it bounces back to close above 2,780 tomorrow or if it would continue its downward path.  If it continues to decline, there is potentially much room to fall.  I am still staying cautious and waiting to see some signs of a stronger support holding before adding to my positions.

STI declines 2.5% to 2,774.54 at closing
Wednesday, 19 May 2010

© 2010 - The Edge Singapore

CapitaMalls Asia: Closing at $2.10 after gapping down today confirmed a lower high for this counter.  The downtrend is intact.  I am 100% divested. See how the volume expanded on a down day? Sell signal seen on the MACD. MFI and OBV have both turned down. More likely than not, this counter is continuing its downtrend.

SPH: Price continues moving downwards towards the 200dMA at $3.70.  If tested, will it hold? We can only wait and see.

Given the current bearish atmosphere in the global stock markets, it pays to take a longer term view in our investments.  To this end, take a look at the weekly charts.  A stronger support for SPH is actually at $3.60, where we find the rising 50wMA.

LMIR: 47c support has been taken out.  With price closing at 45c today, I drew Fibo lines to find the next supports.  It appears that 44c is only a minor support as suggested by candlesticks.  If the decline continues, next major support is at 42c. As seen in the weekly chart drawn yesterday, 41c is support provided by the 100wMA but as this MA is still declining, if conditions are bearish enough, we might see 40c tested.

I am staying sidelined and will wait for the dust to settle.

Related post:
Charts in brief: 18 May 10.