Strategy update: Healthway Medical and Golden Agriculture

Healthway Medical:  Price closed at 15c on even lower volume.  Closing at 15c, however, has not broken the downtrend resistance.  So, the bulls have to keep their bottle of champagne for now.  The larger picture has not changed though.  As volume continues to decline, the low volume pullback theory strengthens; selling lacks conviction.  MFI, a momentum oscillator, continues to rise which suggests buying momentum is gaining, although slightly. 20dMA has completed its downward turn and seems ready to fall, suggesting short term weakness.  However, the 50dMA (at 14c) and 100dMA (at 13c) are still rising which suggest that the trend is still up over the longer term. 

Strategy: Unchanged from yesterday.
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Golden Agriculture:  That the 50dMA at 52c is resistance turned support has been confirmed as the price action closed at 52.5c today.  I would have liked to see the volume expanding more convincingly as well as to see a more enthusiastic candlestick instead of a doji.  The confirmation, to me, at least,  looks just a tad unconvincing.  MFI did rise above the oversold region which shows that buying momentum has again turned positive.  Let us see if the buying up follows through.


Strategy: I bought more at support (52c) and now look to selling if the expected rise in price takes place.  Strong support is at 50c and, if that fails, the 100dMA is at 48c.  As usual, I would sell at resistance levels as the price goes up in such an instance, with initial resistance being at 56c (20dMA and 38.2% Fibo).  If 56c is taken out, price action is likely to retest 59c, a many times tested candlestick support and resistance level.

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.