Golden Agriculture: 50dMA recaptured.

Today, crude palm oil (CPO) closed at RM2,498, up RM46 or 1.88%. Crude oil is again above US$77 and this is good news for CPO. Golden Agriculture's price action recaptured the 50dMA at 52c, closing at 52.5c.  That the 50dMA is resistance turned support needs confirmation tomorrow.  MFI is still at 20% which means that any move up in price has lots of room before the counter becomes overbought.  Initial resistance is provided by the 20dMA at 56c which is also a 38.2% Fibo resistance.

Healthway Medical: Finding support?

To say that Healthway Medical's uptrend broke down a few sessions ago is to state the obvious.  The 20dMA is a support turned resistance at 16.5c.  So, it makes sense to reduce exposure at resistance and to re-enter at support in such a situation.  That time for selling at resistance has come and gone.

If you remember, I said I am waiting to see if the supports hold and to wait for a better time to add to my position.  You might also remember that I said I look at 15c as an important XR support level and that I am almost sure that the 50dMA support at 14c would hold, if tested.  A regular visitor to this blog, CL, asked if it would reach 13c which is where we find the 100dMA.  This, I said, is possible but less probable.

Healthway Medical's price action formed a dragonfly doji to close at 15.5c today on even lower volume.  The dragonfly doji is a bullish candlestick.  It seems that the 15c support is not calling it quits and is holding up quite well.  Added to this is the very low volume which confims that the sell down lacks conviction.  MFI formed a higher low and has turned up.  Watch the green line I have drawn beneath the MFI.  We want to see the MFI forming higher lows for the price to move up convincingly.

Any move up in price would meet with initial resistance at 16.5c, the 20dMA.  Breaking resistance at 16.5c could see the price testing the recent high of 18.5c, which is probably a strong resistance level.  Breaking this would probably see the XR eventual target at 21.5c tested.

I drew a trendline in orange color on the price chart.  Trendline resistance is at 15.5c.  If price action breaks this line soon, it is good news for the bulls.

Strategy: 15c support is holding up, it seems.  Entering at this level is quite safe since the next support level is only 1c away at 14c.  Limited downside and a nice upside.  I have put in my buy queues for tomorrow.  Always hedge and don't be too greedy.