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.

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.