Healthway Medical: Accumulate on weakness

Healthway Medical managed to close unchanged from the previous session at 15c after opening at 14.5c.  Is this a sign of real strength or is it an illusion?  Thin trading volume with a rising MFI suggests that the weaker holders are being shaken out.  Healthway Medical may very well test the 38.2% Fibo support identified earlier and that is at 14c.  The fact that this coincides with the rising 50dMA lend credence to the claim that 14c is likely to be a strong support.  Worst case scenario is a retreat to the 100dMA at 13c which is also a many times tested candlestick resistance level and is, therefore, likely to be an even stronger support level.

Strategy:  I will accumulate on further weakness as I see limited downside.

Saizen REIT: Still accumulating

Saizen REIT touched 15.5c today again on low volume and I was lucky enough to get some from my overnight queue. 

I have drawn two trendlines: a steeper one in orange color (Uptrend 1) and a gentler one in brown color (Uptrend 2).  Touching 15.5c today, Saizen REIT tested the uptrend support of Uptrend 1 and rebounded to close at 16c.  Not only is 15.5c a trendline support, it is also the 50% Fibo support.  Downside risk exists but looking at the diminishing trade volume, a huge price movement downward is unlikely.  The 100dMA which is about where the 38.2% Fibo line is should provide strong support at 15c.  In the most bearish scenario, I do not see Saizen REIT breaking Uptrend 2 which is at 14c, thereabouts.

MFI did not rebound off the 50% mark as I thought it might in an earlier post.  Instead, it is moving closer to 20%, the border of the oversold region.  This is good, in a way, as when the rally comes, there will be more room for price to move up before it becomes overbought.

Strategy:  15.5c is a nice entry price with limited downside.  I will continue to accumulate on weakness.