Healthway Medical: Closed the gap at 15.5c.

On 13 Dec, I divested my trading position in Healthway Medical at 17c, saying that "I expected 17c to be a strong resistance as it is where we find the merged 100d and 200d MAs as well as the downtrend resistance line.  So, a trading position entered on 22 Nov last month at 15.5c was divested at 17c today." and on 14 Dec, I mentioned that "Price could first retreat to 16c, a many times tested resistance and now possible support, before closing the gap at 15.5c."

Healthway Medical closed the gap today at 15.5c. Am I expecting more downside? Share price is pulling back from almost overbought conditions and I do not expect any huge downward movement. Notice that the decline in share price has been on the back of reducing volume. This is good news for the bulls. Also notice that the uptrend in the MFI and RSI are still intact. However, the charts suggest the possibility of both indices to retest their supports. This could mean a reduction in price or volume or both in the near future. A successful retest of supports could lead to another upward movement in price.

Immediate support at 15.5c.  This is followed by 15c and 14.5c.

Related post:
Healthway Medical: Still at resistance.

SPH: Breaking the 100dMA.

A reader recently asked me at what price should he buy more shares of SPH? Well, I always like to buy on weakness. Today, SPH closed at $3.90.  This was after breaking the support provided by the 100dMA at $3.95 last Friday.

Although the MACD is in decline, the MFI suggests that there is some support as the counter gets sold down. Of course, this could change quickly.  In such an instance, using Fibo lines, we see the next support at $3.86. However, the 138.2% Fibo line at $3.83 should be a stronger support being one of the three golden ratios. This is followed by $3.81 and $3.79.  I could add to my position then.