Golden Agriculture impresses

For much of the day, it seemed as if Golden Agriculture would not be able to breach the 57c resistance level even though it gapped up, starting the day at 54.5c. Late day buying pushed the counter past 57c on high volume. Closing at 57.5c today with such strong white candlesticks and two gap ups in the two previous sessions is a bullish sign. MFI shows strong buying momentum but it has moved higher into overbought territory. OBV shows continuing accumulation. The eventual target is still at 62c and there are many minor resistance levels along the way. However, as is my usual style, I've hedged by selling 20% of my remaining position at 57c.

The price of crude palm oil (CPO) is probably supported by the bullish attitude the market has towards crude oil as oil futures have climbed for nine straight sessions, rallying about 12% so far. CPO is up RM20 to close at RM2,702 today. I continue to believe that a test of the previous high of RM2,790 will happen in the near future. Golden Agriculture will be a major beneficiary of higher CPO price.

Healthway Medical: Climbing upwards

Healthway Medical astounds market watchers today by climbing higher, closing at 17.5c, forming a white candle with a wickless top in the process. This candle is reminiscent of the candle formed two sessions ago. Volume is very high as investors seemingly could not get enough of the stock. MFI shows strong buying momentum and moved higher up into overbought territory. OBV shows sharp and continuing accumulation. In extremely bullish scenarios, a stock could stay overbought for a long time. Closing above 17c resistance today is a bullish signal. We need to wait for confirmation the next session to see if the price will move higher to test the next resistance level which I've identified as 19.5c previously. However, I prefer to err on the side of caution and I've divested another 15% of my position at 16.5c and 17c today.