FSL Trust: That sinking feeling.

FSL Trust's price is being battered for losing a big part of a 15% income from a long term charter.  If we think about it, proportionally, its unit price should not lose more than 15% as well. However, from a price of about 60c just before the news was made known, it has plunged to close at 44.5c today. At one point, it reached a low of 42.5c today.

MFI is in oversold territory.  OBV is still declining. However, the price decline in the last 13 sessions show clearly a pattern of low volume pullback.  The fundamentals notwithstanding, I sense an opportunity.  I would be very tempted to buy some at the 138.2% Fibo line which approximates 41.5c.  If the price should go as low as the 150% Fibo line which approximates 39c, I would probably get some.

Related post:
FSL Trust: A sinking ship?

Healthway Medical: Price levels to consider.

Selling most of my remaining shares in Healthway Medical at 15.5c resistance on 11 May instead of waiting to collect the 0.12c dividend turned out very well. Heatlhway Medical closed lower at 14c today. This is the support provided by the rising 200dMA which seems in danger of breaking as more than 20m shares were sold down at 14c today.

The MACD is still falling in negative territory.  MFI has been forming lower highs and OBV has been declining.  The technicals suggest continuing weakness. 

If the 200dMA is compromised, the longer term uptrend is in danger.  The previous bottom was at 13.5c.  This should provide some support.  If that gives, the candlestick resistance at 12.5c should become support.  12.5c was the resistance in a trading range which lasted for months and frustrated many. Price finally broke out of that trading range in the new year.  So, to me, 12.5c should be a strong support.  However, if price should fall back into that range, the support in the trading range is at 11c.

Many people remember the round number 10 and it was at 10c that I first started buying shares of Healthway Medical in mid 2009.  Will the price of Healthway Medical reach 10c again sometime this year? Personally, I rather doubt it but one never knows.  We can only wait and see.

Good luck to all who are still vested and good luck to those who would like to accumulate at lower prices.  Obviously, I am sitting on the fence.

Related posts:
Healthway Medical: A weak first quarter.
Charts in brief: 11 May 10.
Charts in brief: 10 May 10.