Golden Agriculture: Accumulate on weakness.

I plan to accumulate Golden Agriculture on weakness. This would mean at 67.5c support as provided by the trendline support connecting the lows of 6 and 25 May 2011. I would not, however, throw in the kitchen sink. This is because if 67.5c should break and if price were to close lower, we could see price going to 65c and the long term uptrend would still be intact. Buy more at 65c is what I would do if that should happen.

The ADX suggests a lack of trend for Golden Agriculture's share price. In such a situation, I look to the Stochastics for clues. With it closer to the overbought region and forming a lower high although price touched a higher high at 71.5c, the chance of a further decline in price is high.

However, the decline in price in the last two sessions were on the back of lowering volume. This paints a picture of a low volume pullback. So, although further price decline could take place, it could take place due to a lack of buyers and not an increase in sellers. Indeed, the CMF shows a decline in buying pressure but not an increase in selling pressure.

Related post:
Golden Agriculture: Watch the 100dMA.

Sabana REIT: Resistance at 93c demolished!

After the market closed, sleepy and some might even say unloved Sabana REIT saw 2,514 lots bought up at 94c which led to a wickless white candle being formed on higher volume, breaking resistance provided by the declining 50dMA like a hot knife on butter!

The bullish divergence between MACD and price action has delivered and did so in a smashing manner. A test of the declining 100dMA as resistance is most likely and we could see 95c and 95.5c tested next. Although there is no bearish divergence to speak of, locking in some gains is a tempting proposition. I might just divest partially in the face of a rapid appreciation in price.

Related post: Sabana REIT: Still waiting for a 10% yield?