Golden Agriculture and First Resources.

Golden Agriculture is closing in on the 100dMA as it ended the day at 71c today on high volume. We could very well see the support provided by the 100dMA tested at 70c in the next session. If it should break, next support could be found at 66c where the rising 200dEMA would be approximating soon.  The 200dEMA, being a long term MA, should be able to provide a much stronger support in case of further decline in price.

The MACD is falling in negative territory. Both MFI and RSI are also declining in overbought territories. The OBV shows clear distribution ongoing. The time to buy some shares in Golden Agriculture could be near.

First Resources declined with a vengeance yesterday on extremely high volume but volume dried up today as price declined another 4c. Could price decline further next week? It certainly could but with volume drying up, drastic price decline similar to what was witnessed yesterday is less likely to happen again.

For anyone thinking of initiating a long position in the counter, the 100dEMA at $1.38 and the 100dMA at $1.35, if tested, could be nice entry prices.

See analysis by DBS Group Research here.

First Resources drop a buying opportunity. Major shareholder Eight Capital sells 75 million ordinary shares and Citigroup places 15 million treasury shares held by the company at $1.48 each.
Thursday, 20 January 2011

© 2011 - The Edge Singapore

Related post:
Golden Agriculture: Looking to the 100dMA.