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Saturday, February 19, 2011

Golden Agri

Golden Agri lost 18 cents ( or 27% ) since January 5, 2011. The counter is currently bearish and there is no buy signal yet. However, the latest closing at $0.65 is touching two support levels confluence by two trendlines. RSI has reached oversold position.

Buying at support has the advantage of being early in reaping maximum profit provided if the support holds.
However, if the support fails. You will end up at the wrong side of the trend. A safer approach is to wait for proper buy signal but that is often late. So perhaps buying 50% at support and another 50% against buy signal may be a compromise...