Healthway Medical: Support compromised.

18.5c support which has stayed strong since early July was compromised today as price touched a low of 18c before closing at 18.5c.

The MACD continues to decline towards zero.  MFI's lower high shows a sustained reduction in demand. OBV shows some distribution activity.  Nothing too alarming.  However, without any high volume buy ups, price could drift lower.  Price is now below the 20d and 50d MAs. Next level of support is at 17c.

A quick check of the weekly chart shows that the 20wMA approximates 17c, lending strength to the idea that this could be a strong support. However, it is also obvious from the chart that price bounced off the 50wMA before heading higher in recent past.  With the MACD about to do a bearish crossover with the signal line, the possibility of price going lower cannot be discounted.

Golden Agriculture: 20% rise in net earnings.

Price broke the 58c support to touch a low of 56.5c before closing at 57c.  Volume is higher than yesterday's but not significantly so. The selling down, although formed a big black candle, lacks conviction.

In my analysis yesterday, I mentioned that the MFI could test 50% as support.  Today, it is at 66%.  Still declining, it suggests a weakening in near term demand.  However, the recent higher high gives me reason to be optimistic.

Continuing weakness could see a stronger support provided by the flattish 100dMA at 55.5c tested.  I would increase my exposure to the stock if price should test this support level.  Higher CPO price is good news for Golden Agriculture and would strengthen its fundamentals.

Golden Agri off 3.3%; Cost pressure may persist. On brighter note, any concerns over Greenpeace’s recent allegations of company engaging in environmentally harmful planting practices should ease with Golden Agri releasing findings of independent study clearing it of any wrongdoing.
Wednesday, 11 August 2010

© 2010 - The Edge Singapore

Golden Agri-Resources posts 20% rise in 2Q net profit to $89.4m. As at end of June 2010, GAR’s financial position remained healthy with conservative gearing and sufficient cash balance.
Wednesday, 11 August 2010

© 2010 - The Edge Singapore