Golden Agriculture: Buy signal confirmed.

Crude palm oil (CPO) closed up 1.46% today or RM39 to close at RM2,709 (US$811).  The outlook is bullish and CPO's price might push higher yet.  As mentioned in my previous post on Golden Agriculture, this is good news indeed for the company.

Golden Agriculture did a bullish gap up today, closing at 56c, forming a white spinning top.  Indecision?  Seeing how the spinning top did not take place after at least several consecutive days of upmove in price (because at least several days in one direction is required to qualify price movement as a trend), it is unlikely to be a trend reversal signal. 

The buy signal seen in the MACD is confirmed today.  50% on the MFI has lived up to expectations and acted as a support, preventing the index from declining which would have signalled negative buying momentum.  All in all, chances of Golden Agriculture's price pushing higher seems good.  In the event that 57c is taken out, 59c (138.2% Fibo resistance) would be the resistance to watch. Support remains at 50c, a many times tested candlestick support and resistance level which coincides with the rising 100dMA.