Golden Agri looking ripe

Hello all,

This is E5H.SI, Golden Agri. I think the overall chart of Golden Agri looks fantastic, more so some time back. I just did a quick check and realised my last post on Golden Agri was quite a while back. I do not understand why. Anyway, I will show you all my take on Golden Agri.

First up, I have a weekly chart of E5H.SI – just to get a bird’s eye view. Recently, Golden Agri made a nice run to a post-crash high of about 84 cents. The last few weeks have seen Golden Agri slip down to about 65 cents now. I have been keeping an upward parallel channel on my chart for quite some time already. You will see it in blue below. This is a fantastic looking channel – looking very solid. The top of the channel coincides with a resistance zone I have identified too. For much of the latter months of 2007 and the early days of 2008, the 80 cents zone was a strong support. The recent pullback reiterates why I think this is a strong resistance zone.

On the next chart, I have plotted fibonacci retracements studies. The key level “in play” right now is the 50% level at 64 cents. This will be immediate support. Right now, not only is that acting as support, the 200- and 50-week MAs are coming up, coupled with the bottom of the channel. I establish 60 cents as strong support for now. Do take a look at the brown arrows. I like how price is sensitive to the levels marked out fom the fibonacci retracements. I took the high in 2007 to the low in 2008 in the plotting.

Going into the daily chart, I see the important 200-day moving average coming from underneath as well. I see Golden Agri as trading near a huge region of support. Technically, this should mean that price may rebound soon. There is still slight room for downside; sideways movement may occur as well. As a chartist though, I think I need not say what I expect to look for in Golden Agri in the weeks ahead. Price is near a strong support region, and I have a valid bullish pattern on the price action chart. If price breaks down form this support region – which can happen, since nobody is saying Golden Agri’s price cannot do so – then I will look over Golden Agri’s chart and see what has happened.

If the Singapore market continues to tank, there is a good possibility Golden Agri may just fall out of this strong channel. I do not believe in pure speculation, so I would want to say that I am holding a bullish view on Golden Agri. The problem with channels is that they all come to an end. And I realised that alot of stocks that I identify trading in channels, they seem to trade out of their channel once I see them. If you have been here for some time, you would have seen many channels that I show here in real-time, only for price to slip out of the channels days after my posts. You can call that hard luck for me. In this case, I just want to caution anyone who wants to trade as according to what I may be implying in my post. (I do not make explicit recommendations, since I do not use this blog to tell people what to buy. Read the “About Site” page for more). Yes, Golden Agri may be near strong technical levels (in my opinion at least), but anything can happen. Please do your homework, and decide for yourself if this is truly ripe for a trade.

All analyses, recommendations, discussions and other information herein are published for general information. Readers should not rely solely on the information published on this blog and should seek independent financial advice prior to making any investment decision. The publisher accepts no liability for any loss whatsoever arising from any use of the information published herein.

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2 Comments

  1. Posted March 1, 2011 at 10:17 PM | Permalink | Reply

    golden agri break out and closed the day with a white marabozu candle to signify it’s bullishness. with sustainable trading volume, golden agri could proceed to test it’s next level of resistence at 0.72.

    Refer to the techical chart here.
    http://sgsharemarket.com/home/2011/03/golden-agri-breakout/

    • Administrator
      Posted March 2, 2011 at 9:51 PM | Permalink | Reply

      Vonn,

      Thanks for the input. You have quite a nice website too. Will be following your site.

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  1. […] Golden Agri looking ripe « TechnicalAnalysisTalk […]

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