Healthway Medical: Almost but not quite.

Healthway Medical looked as if it was going to lose its support at 14c at one point today as almost 10m shares were sold down at 14c and wiped out the entire buy queue.  However, no selldown took place at 13.5c and buyers came back to close the day at 14c. 

The 50dMA support has held up.  This is meaningful as not closing lower today has helped the counter to take the first tentative step away from the lower limits of the Bollinger bands.  It has also broken out of its downtrend resistance.  It is still too early to say if this means that the correction is over but it might just be an early sign.

MACD has crossed below zero, confirming that the upward momentum is well and truly over.  In the next session, if price continues to stay at 14c or higher, we could say more confidently that the counter might be moving into a consolidation phase.

Golden Agriculture: Reversal at hand?

Golden Agriculture is beginning to look more promising.  After forming a nice white candle yesterday which almost engulfed the preceding session's price action, it formed a short black candle today.  In charting terms, this is a thrusting pattern in which the price action moved in the opposite direction of the preceding up day but did not manage to go beyond the midpoint of the preceding white candle.   

The price action also happened on the back of reduced volume which confirms a lack of selling conviction.  MFI has formed a higher low and exhibits an upward bias, possibly indicating increased buying momentum.  The MACD's decline is abating and we want to see the distance with the signal line closing which will happen if a bullish crossover is going to take place.

Golden Agriculture is still trading above its uptrend support despite its price having corrected by more than 20% from its recent high.  That its correction is at an end is quite evident as it has emerged from its recent steep downtrend resistance.  It is consolidating and signs are that price might be getting ready for a move upwards.  Initial resistance is provided by the 50dMA and 20dMA at 52c and 53c respectively.  In an upward move, these resistance are likely to be swept away.  More meaningful resistance are at 55c and 59c.