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A new set of Fibo lines show resistance at 56c (38.2%) which happens to coincide with the 20dMA, 58c (50%) and 59.5c (61.8%).
I did not manage to get any at 50c, the critical support level, but that's ok as I have been accumulating shares of Golden Agriculture as its price moved downwards this and last week.
The fundamentals for crude palm oil remains compelling and I would accumulate shares of Golden Agriculture if its price weakens to supports instead of moving up in the near future.
Bloggy Award
2 comments:
Hi AK71,
I recently read your post about how far STI can go down. Very insightful article. Thank you very much. I have a question, do you think that this is a long term bear market that has awakened? i am very concern that this "recovery" may be a dead cat bounce.
Thank you!
Anthony
Hi Anthony,
Thank you for visiting and the compliments. :)
There was a lot of worry that the upturn from March 09's bottom was a bear market rally when it first happened. However, it became increasingly apparent in time that it was not a bear market rally. It was the beginning of a bull market and a fierce one at that! On 15 Jan, I wrote something about it in a post: STI: Up or down?
We will have to pay attention to the trend. The STI, despite its current weakness, is still trading above the channel support. The uptrend is intact. The market is just going through a much needed correction.
As for whether this is the awakening of a bear market, for now, it does not look like it. TA has its limitations and I can't see what is beyond the charts.
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