Golden Agri Pausing for Breather

Golden Agri’s 5 day’s surge has come to a halt today, due to profit taking.

GMMA shows that long term averages are rising in tandem with the short term averages.

This is an indication of increasing support from investors.

Minor resistance of 62 cents turned support yesterday has seen it drop below that level again today. 62 cents might not be a resistance /support level.

A drop below 61 cents should trigger more selling, which is the high point on 8th Jan, which should be considered as a more valid support level.

The shortest term moving average from GMMA shows support by short term trader at 61.5 cents

Commodities in general is experiencing a correction at the moment.

With the continuation of the fall of the US dollars, commodities’ correction might be short lived and resumption of its rise is highly probable.

Prices should be consolidating and forming a base of sorts. Stop loss or take profit at 60.5 cents.

Golden Agri Breaking Out

Golden Agri 31st Dec 2009

A bullish flag formation since April 2009 is beginning to show signs of a major breakout.

Resistance of 51 cents has been tested several times and looks likely to be breached.

GMMA since Nov started to show good trend behaviour.

Support can be found at 50 cents and 48 cents.