GoldenAgri – Price Volume Divergence

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Current GoldenAgri chart suggests that a deeper correction may take place if the 200D MA support is broken.

A few bearish indicators shown in the chart:

  1. Price Volume Divergence. Although the stock price is rising but the volume is dropping, indicates the uptrend is not sustainable.
  2. Golden Agri is facing 50D MA resistance after the recent run up in the stock price. This 50D MA resistance is also a 78.6% Fibonacci Retracement Level. RSI & Stochastic are turning down to support a probable bounce down scenario.
  3. Golden Agri up trend support has been broken.

If the 200D MA support is broken, the next important support is at $0.458 (61.8% Fibonacci Retracement Level).

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Best World – Forming a Wedge

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Best World is forming a Wedge and maybe a Symmetrical Triangle. The chart pattern looks good to trade because it is moving and swinging up and down, unlike certain penny stock that the stock price never move for months! A very safe entry point is somewhere near the wedge support at about $0.30.

If everything goes wrong technically, still can hang on this stock base on the fundamental.

Base on FY2009 Financial Report

  • PE = 7.25
  • Net Margin = 13.3%
  • ROA = 14.8%
  • ROE = 17.9%
  • Current Ratio = 5.1
  • No Debt
  • Dividend Yield = 5% (base on $0.34)
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