Healthway Medical closed at 15c today on reduced volume. MFI has also stopped declining. All these suggest that it is more closely aligned with a classic case of low volume pull back and that it is not experiencing a massive sell off. This does not mean that its price will stop declining, however.
It is common TA wisdom that without any expansion in volume, any upward move in price is unsustainable. Another common bit of TA wisdom is that in the absence of any meaningful expansion in buying activity, the chances of a continual downward drift in price is higher even if there is no massive selling.
The price is at the 15c support level now. It is likely to test the 14c support in time although a flattened MFI, at this point in time, suggests that it might not happen in a hurry. Of course, if there is any positive catalyst in the near future to bring buying activity back in force, things might all surprise on the upside. This possibility seems remote for now.
Personally, I partially divested at 16c this morning the shares I bought as a hedge at 16.5c two weeks or so ago, booking a small loss in the process. After this divestment, the Healthway Medical shares I am left with are mostly those bought between 10c to 13c last year. These, I am quite comfortable holding for the longer term as they are actually fully paid for with the gains from divesting 80% of my original investment in the company.