Golden Agriculture hit resistance at 72c and closed lower at 70.5c, forming a black candle in the process. In its attempt to move above 72c resistance, volume was relatively lower, suggesting a lack of buyers.
A dead cross between the 50dMA and the 100dMA is still on the cards and the market has turned cautious as evident in the declining volume as price tried moving higher in the last 4 sessions. A pull back would see initial support at 68c, followed by 64c, as provided by the rising 200dMA.
What if the counter were to move higher? Well, there is that probability since volume is healthy this week, forming a nice white candle in the process. In fact, it could be a 3 candle reversal pattern. Looking at the weekly chart, 72c is a longer term resistance as provided by the 20wMA. If this were to give way next week, we could see price go higher to 75c and, then, 80c.
On the other hand, things could get quite ominous if the downtrend which started in early January 2011 were to re-assert itself. The 50wMA is currently at 62.5c while the 100wMA is currently at 54c. Both these MAs are long term MAs, however, and should provide strong support if ever tested.
On the other hand, things could get quite ominous if the downtrend which started in early January 2011 were to re-assert itself. The 50wMA is currently at 62.5c while the 100wMA is currently at 54c. Both these MAs are long term MAs, however, and should provide strong support if ever tested.
0 comments:
Post a Comment