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Has Golden Agriculture's share price turned bearish? I would not say bearish exactly since the uptrend that started on 23 Feb 2011 is still intact. However, the inability to form a higher high is worrisome. Having said this, price could go as low as 66c in the next couple of sessions and the uptrend would still be intact.
Looking at the chart, the trendline resistance that started on 30 May 2011 has immediacy compared to the one which started on 11 Apr 2011. It is currently at 68c. There is more downward pressure in the current timeframe.
Is there no chance of a rebound? Well, although the Stochastics has just risen out of the oversold territory, we could be walking on thin ice here. If we believe in chart patterns, it seems that a symmetrical triangle is forming. If this triangle is valid, we should see a sharp movement in price in either direction two thirds of the distance to the apex. It could happen soon.
If price could find strong support at 66c and in the process forming a white candle which ultimately breaks resistance, there is a chance of further upside in price. If price should break support at 66c on the back of higher volume, we will probably see the start of a new downtrend.Related post:
Golden Agriculture: Contra at 68.5c.
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4 comments:
Hi AK
Juz curious, have u placed any buy Q? :P
Hi Wong,
Yes, I put in a buy order at 66c. It is a smallish hedge in case price does test the support before heading higher. :)
Hi AK71
GAR hit a low of 66c today.. do u tink it wil go down to 61c before going up again?
Hi Wong,
This is a very difficult question to which I do not have an answer.
Buying at 66c support is a bet that its share price would rise. If 66c support should break, one could cut loss if it is a trade. That's all I can say. :)
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