Golden Agriculture

Opening with a gap up today confirmed the bullish signal seen on the weekly chart yesterday which was the price closing above resistance provided by the descending 100wMA at 51c. That cleared the way for the counter to move higher. It just needed some buying momentum which was amply provided today as volume quadrupled! This is a strong confirmation even though it is now met with resistance at 54c. This is a short term resistance provided by the 123.6% Fibo line and has a high chance of being overcome in the next session as we have a wickless white candle today. Initial target is at 57c as provided by the 150% Fibo line. Eventual target remains at 62c as posited on 29 Dec 09. Chart: singaporeanstocksinvestor.blogspot.com/2...re-confirmation.html

More affirmation for Darryl Guppy\'s expectation of US$100 for crude oil through his TA - “As far as current demand trend shows, we will not be wrong to expect the price to rise as high $100 by mid 2010. We are not only seeing a better crude demand but also a better demand for the refined products,” said a Dubai-based trader. Dubai based traders reiterated that they expect the bull run to continue this year. The comment comes in tandem with the views of Barclays Capital which said that crude demand will rise to a high of $100 a barrel this year, but will average at about $85 a barrel.Oil prices expected to hit $100 in 2010 say Dubai traders What do we do? Well, this is good news for crude palm oil (CPO).

For much of the day, it seemed as if Golden Agriculture would not be able to breach the 57c resistance level even though it gapped up, starting the day at 54.5c. Late day buying pushed the counter past 57c on high volume. Closing at 57.5c today with such strong white candlesticks and two gap ups in the two previous sessions is a bullish sign. MFI shows strong buying momentum but it has moved higher into overbought territory. OBV shows continuing accumulation. The eventual target is still at 62c and there are many minor resistance levels along the way. However, as is my usual style, I\'ve hedged by selling 20% of my remaining position at 57c. Chart: singaporeanstocksinvestor.blogspot.com/2...lture-impresses.html

Eventual target price for Golden Agriculture remains at 62c but with weakened sentiments, flattening momentum and the many minor resistance levels along the way, it would be wise to reduce exposure as a hedge. Gap support is at 54c and this coincides with the 123.6% Fibo line. singaporeanstocksinvestor.blogspot.com/2...-burning-bright.html

Crude palm oil (CPO) closed down RM4 today at RM2,626 (US$777). Nothing to shout about but Goldman Sachs raised its forecast for CPO prices today to US$850 this year and that prices may increase to US$950 next year. This gave some much needed fuel to push Golden Agriculture higher, reaching a high of 61c before closing at 60.5c. This move came on the back of respectably high volume and there is a chance that the target price of 62c might be attained in the next session. If 62c is taken out, the next eventual target is 69c which was a support level that broke in late July 08. As is my usual style, I would hedge by divesting partially at resistance and take some profit off the table. singaporeanstocksinvestor.blogspot.com/2...d-goldman-sachs.html

In my previous TA on Golden Agriculture, I said that if 62c is taken out, the next target is 69c. If the price action stays as energetic as it did in the last few sessions, 69c might be reached sooner rather than later. However, it is likely to be a stronger resistance than 62c as it is not only a candlestick resistance/support level, it is also a 123.6% (in red) and a 161.8% Fibo line (in green). Drawing two sets of Fibo lines instead of one is what I do sometimes to fine very strong resistance or support levels. MFI has pushed higher into the overbought territory and OBV shows continuing accumulation. With the MFI so overbought at 98%, I wonder how much longer can the gravity defying upmove continue. Chart: singaporeanstocksinvestor.blogspot.com/2...defying-gravity.html