As commented earlier, Golden Agri Resources stock price action (PA) is fighting to clear the resistance zone $0.74 and $0.75 resistance level. When clear the next possible critical resistance to clear will be $0.83.

Friday, January 13, 2012 closed at $0.740 just right below the resistance zone. When you zoom out and look at it again you may notice that an inverted head and shoulders has completed the right shoulder. The price action is now at the ‘neckline’. Can you see it?

If this is true, it is a convergence of both the resistance and neckline. What does that mean? From a technical analysis (TA) stand points, a convergence means that the price action would respect before it next major change. Will see.

So go back to the story that we have painted so far from the chart. If you are a new visitor, feel free to browse around for the earlier posts for the storyline we try to built. We found bullish flag trend continuation pattern forming. Next, we saw a completion of the right shoulder of the inverted head and shoulder. The MACD is above zero line. Can we expect the price action to break above the resistance zone and continue to move higher? It will be more solid when the break out can retest the resistance zone and turn it to a support. The energy will be very strong when the MACD moving from below zero line to above zero line; this is just ideal situation.

Form your strategy and plan, plan your trade and trade your plan. Of course, you can still win if you trade randomly. This is pure luck.

Monitor the stock and trade with caution. Happy trading.

Moses, January 14, 2012

After Notes:

It seems like I know them all.  No.  By the way, I am not here in bragging rights. I enjoy looking at the chart and wondering what will happen next. Trading strategies are fun, it is even more fun in understanding what others see the price action or how a technical analysis trader see it too.

You should consider starting your own analysis if you have not done so. Enjoy the ups and downs of the trading journey. It is just like golf, it is personal. You may have a few good one but some how you can’t repeat it again. Don’t worry, it will come back again when you keep practice, practice and practice.

Golden Agri Resources Daily Chart

Golden Agri Resources, E5H Daily Chart - Inverted Head and Shoulders

DSICLAIMER

Information provided here is of the nature of a general comment only and no intend to be specific for trading advice. It has prepared without regard to any particular investment objectives, financial situation or needs. Information should not be considered as an offer or enticement to buy, sell or trade.  

You should seek advice from your broker, or licensed investment advisor, before taking any action.

Once again, the website does not guarantee any results or investment return based on the information and instruction you have read here. It should be used as learning aids only and if you decide to trade real money, all trading decision should be your own.

Last week Golden Agri Resources, stock code E5H stayed bullish for the whole week, riding the wave together with STI rally. The price action ended at $0.735. Monday, the price action get push further higher while the STI index was facing a deep. The high of the day was $0.75. It retest the February 7, 2011 high again. This is the high at $0.75 after eleven (11) months.

Yesterday, January 10 it continues to fight to retest $.745 again and again. It closed at $0.740 which $0.01 higher than Monday closed.

Golden Agri is fighting to break up the critical level at $0.74 and $0.75, if the price could close higher with strength. This will give a lot more space for this stock to retest last January high at $0.83 again.

What is the story the chart is trying to relate to us? We can see a bullish flag trend continuation pattern forming. Were December where the flag body; price consolidation accumulated enough energy for the outburst? Can this stock go rocket high? Who has a crystal ball that can gaze the outcome?

Now, many may say with the gloomy economy and the uncertainty of the global market it will be difficult for this to happen. However, do not forget the price action you see at the chart has already including all the trader’s psychology, emotions and fears.

But, the candlestick has no body is not a good sign. It is very risky with such candlesticks around. Really like to see a few solid big candlesticks around at the rally to support the push.

Monitor the stock and trade with caution. Happy trading.

Other post

Can Golden Agri, E5H Hold Up $0.75?

Stock Analysis – Golden Agri, E5H

Like what you read here. Thank you if you are the return visitor. Please come back often. Have fun!

Moses, January 10, 2012

Golden Agri, E5H Daily Chart - January 10, 2012

DSICLAIMER

Information provided here is of the nature of a general comment only and no intend to be specific for trading advice. It has prepared without regard to any particular investment objectives, financial situation or needs. Information should not be considered as an offer or enticement to buy, sell or trade.

Can Golden Agri, E5H hold up the price action at $0.75? The yesterday high and it is also an eleven months high. See chart for the price action and trend.

Will add more comment later. You can find all the thought on the chart.

Check the earlier post for additional analysis.

Golden Agri Daily Chart - January 9, 2012 - Hitting the eleven months high

Moses, January 10, 2012

DSICLAIMER

Information provided here is of the nature of a general comment only and no intend to be specific for trading advice. It has prepared without regard to any particular investment objectives, financial situation or needs. Information should not be considered as an offer or enticement to buy, sell or trade.  

See chart for illustration.

Notes, this is not meant to be used for buy or sell decisions. This is to demonstrate the application of Amibroker and its capability. Users must understand what is MACD, equal distance channel and support and resistance to appreciate the chart.