Shares & Derivatives
Potential Short Term Trade: Golden Agri
By I  •  April 30, 2011

Let's first look at GAR's weekly chart.

We can see that GAR is on a long term uptrend, and hence, two choices here: trade from long side or step aside.

I will choose to go long on GAR, explained on the daily:















We shall look at the indicators first:
The Force Index (Long Term) shows a nice bullish divergence, indicating lack of power in pushing the price down.

The MACD lines show no divergence, they rise as price rise.
The RSI also show no divergence.
Stochastics show a deeply oversold condition.
However, oversold can remain oversold for a long time. Just look at Wilmar.

Indicators don't show any juicy bullish divergences, yet what I like about this potential trade:
1.) GAR is very close to it's strong support at 65c. Look at the line I drew.
2.) When GAR was bullish in 2009 and 2010, it bounced from ......
Read the full article
By I
LEAVE A COMMENT
LEAVE A COMMENT

Your email address will not be published.

*

Your Email Address will not be published
*

Read More Articles
More from thefinance