Golden Agriculture: Further growth.

Feeling somewhat groggy from watching two movies back to back but I have some thoughts about Golden Agriculture which I would like to pen. I like Golden Agriculture's business and I like its numbers. I also like its technicals.

I am still in the queue at 67.5c to add to my long position. The neckline of a potential head and shoulders pattern is at 65.5c thereabouts. I would like to accumulate on weakness.

The ADX suggests a lack of trend and the Stochastics in such an instance suggests that price could experience more weakness. Notice how volume seems to be reducing as well in the last few sessions.

Golden Agri targets production growth, more land: Update
Tuesday, 07 June 2011

© 2011 - The Edge Singapore

NOL: Moving average envelope.

NOL suffered heavy selling today and touched a low of $1.71 before closing at $1.73. Such an intense sell down could see a follow through the next day.

However, it is interesting to see that despite the heavy selling pressure, we still have the potential for a positive divergence to form. Much would depend the price action in the next session.

The lower range of the moving average envelope should provide some support at $1.68 in the event of further selling down. Any recovery in price could see gap cover at $1.82. The way I look at it, anyone who is still thinking of shorting NOL at the current prices should think twice.

I would probably add to my long position by purchasing at $1.68 if it should be tested as support. Downtrends are rivers of hope.