Price broke the 58c support to touch a low of 56.5c before closing at 57c. Volume is higher than yesterday's but not significantly so. The selling down, although formed a big black candle, lacks conviction.
In my analysis yesterday, I mentioned that the MFI could test 50% as support. Today, it is at 66%. Still declining, it suggests a weakening in near term demand. However, the recent higher high gives me reason to be optimistic.
Continuing weakness could see a stronger support provided by the flattish 100dMA at 55.5c tested. I would increase my exposure to the stock if price should test this support level. Higher CPO price is good news for Golden Agriculture and would strengthen its fundamentals.
Golden Agri off 3.3%; Cost pressure may persist. On brighter note, any concerns over Greenpeace’s recent allegations of company engaging in environmentally harmful planting practices should ease with Golden Agri releasing findings of independent study clearing it of any wrongdoing.
Wednesday, 11 August 2010
Wednesday, 11 August 2010
© 2010 - The Edge Singapore
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