Golden Agriculture: Oversold.

Golden Agriculture closed above the 50dMA at 52c, almost forming a dragonfly doji, which is usually a bullish sign.  The MFI declined and dipped into oversold territory today.  We have the conditions for a possible reversal.  Any downside should be restricted by the 100dMA at 48c while initial upside resistance is provided by the 20dMA at 56c.  With all the longer term MAs still rising, although gently, the downside risk for Golden Agriculture seems limited for now.

With recent upgrades of the prospects of crude palm oil (CPO) by RBS Asia Securities and BNP Paribas for 2010, with the former going so far as to say that Golden Agriculture has a fair value of 71c, a floor for the counter at 50c is not unreasonable.

A quick peek at the weekly chart shows an imminent golden cross between the rising 20wMA and the descending 100wMA.  Spotting a probable reversal is always exciting and Golden Agriculture is making my heart beat a little faster.

Saizen REIT: Positive newsflow.

Saizen REIT's CEO bought another 100 lots at 16c yesterday.  Persistent insider buying is a hallmark of this REIT.  A positive development on its loan for YK Keizan has also eliminated the need to draw on a bridging loan which would have entailed considerable interest expense.  YK Keizan's loan would be fully repaid using only internal resources by April.

Saizen REIT closed at 15.5c today.  I might get my wish next week to buy more at this price.  If I am lucky, I might even get to buy more at the 100dMA.  This coincides with a longer term 38.2% Fibo line and is likely to be a strong support.  That's at 15c.

Saizen REIT will be presenting its results on 11 Feb, just before the Chinese New Year.  That gels with my chart reading on a probable breakout timing on the upside.  A narrowing of the Bollinger bands gives some credence to this reading as well.  Initial breakout targets remain at 19c and 21c for now.