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Healthway Medical closed at 15c today on reduced volume. MFI has also stopped declining. All these suggest that it is more closely aligned with a classic case of low volume pull back and that it is not experiencing a massive sell off. This does not mean that its price will stop declining, however.
It is common TA wisdom that without any expansion in volume, any upward move in price is unsustainable. Another common bit of TA wisdom is that in the absence of any meaningful expansion in buying activity, the chances of a continual downward drift in price is higher even if there is no massive selling.
The price is at the 15c support level now. It is likely to test the 14c support in time although a flattened MFI, at this point in time, suggests that it might not happen in a hurry. Of course, if there is any positive catalyst in the near future to bring buying activity back in force, things might all surprise on the upside. This possibility seems remote for now.
Personally, I partially divested at 16c this morning the shares I bought as a hedge at 16.5c two weeks or so ago, booking a small loss in the process. After this divestment, the Healthway Medical shares I am left with are mostly those bought between 10c to 13c last year. These, I am quite comfortable holding for the longer term as they are actually fully paid for with the gains from divesting 80% of my original investment in the company.
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6 comments:
Hi AK 71,
I have accumulated 800 lots of HW rights as it stand today. If I buy in, it will be 0.15 cts per share.
Lost about 3K in the process but is confidence in long term investment.
Hope that the positive result of HW will push the share northwards.
Cheers
Kingston
Hi Kingston,
I am not buying more at the moment. I am waiting to see how low it might go. I want to see if the supports I have identified will hold.
Good luck. :)
actually i am thinking of buying in @ 13cts as projected by the management...but well time will tell if it drops till that price. keep my fingers crossed...
Hi CL,
You are waiting for it to drop to 13c? I don't remember the management projecting a 13c value. Are you referring to the share placement? Those shares are being placed out at 13c to certain key investors.
sorry my bad...its a 27.4% to the volume weighted average price of S$0.179 for trades done on the Shares on the SGX-ST on 25 January 2010.Possible to drop to that value in the near future from your personal opinion?
Hi CL,
Possible, of course, but the probability is lower. If you look at the chart in this post, 13c is at the rising 100dMA (red line) which is a strong support. The decline has been taking place on relatively low volume so far. So, 13c does not look too likely in the near future. Of course, if it does reach 13c, that's a nice price to enter or re-enter.
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