Healthway Medical: Oversold

For those of you who are beginning to wonder if the decline will ever stop, remember I said that every lower support becomes stronger in a situation where pullbacks happen on lower volume.  MFI took a sharp dip today into oversold territory even as the MACD has a buy signal, the first in more than 2 weeks. 

Remember that TA shows where the supports and resistance levels are.  It does not mean that those levels would be reached.  For anyone who wants to go long here, it might be a good idea to hedge at 13.5c instead of waiting for 13c to be hit, which might or might not happen.  Remember, this is a hedge, there is still a chance that 13c might be reached.

Healthway Medical: Breaking an important support.

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F&N: Rocketing upwards.

This counter rocketed upwards as it reported a 55% increase in nett profit.  This is on the back of expanded volume.  Very impressive seeing as it was a pre holiday trading session.  Resistance at $3.92 was sliced through like a hot knife through butter.  However, the dead cross at the confluence of the 20dMA and 50dMA was too strong a resistance to break today as price action touched $4.08 and retreated to close at $4.02, just under the declining 20dMA.  This is a fish that swam away from me. No matter. There are many other fish in the ocean.


For those of you who really like the F&N fish and still want to buy some, pay attention to the 100dMA.  This seems to be the resistance turned support at $3.93.  We need confirmation in the next trading session.  This would be a safer level to buy some F&N shares if the support is confirmed instead of chasing.
 
The MACD is closing in on the signal line and a bullish crossover seems most probable.  MFI has risen above the oversold territory and has plenty of room before it reaches 50% which may act as resistance.  Of course, there is plenty of room before it is overbought.
 
Using candlesticks, I've intuitively identified three higher levels of resistance if the counter moves higher.  Good luck to interested parties and congratulations to parties brave enough to buy earlier this week.

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