Golden Agri has broken the up trend support level recently. The key question now is whether Golden Agri can move back up and stay above the up trend support line like what the stock did back in July 2009. If GoldenAgri cannot break this uptrend support turned resistance line, the stock will probably start a deeper correction. The next two immediate supports are $0.50 (200D MA support) and $0.456 (61.8% Fibonacci Retracement Level).
GoldenAgri closed at $0.45 today and formed a Bearish Abandoned Baby pattern (reserval pattern). $0.44 is 20D MA immediate support and next critical support is $0.412. I exit my trade today at $0.455 as downside probability is much higher than upside probability.
I predict a short term rally after seeing a hammer candle (a trend reversal from short term down trend) yesterday. Today GoldenAgri closed at $0.45 with 86.3 Million shares traded (#3 Most Active Stock). The 10D MA just crossed 20D MA and the stock price is trying to cross above the 10D MA line. All other indicators showed some bullish strength. Strong support at $0.43.
