BMI Research: Golden Agri’s performance in the coming quarters will likely remain sluggish as palm oil production is tipped to be slow or even register negative growth. Meanwhile, downstream operations will continue to be hurt by lingering overcapacity, and the outlook for the company’s oilseed division in China remains ncertain, BMI Research has kept a “neutral” view on the company’s strategy over the long term due to enduring headwinds in the refining sector and the relatively low and declining margins due to rising expenses. ~ 28 Jan 2016
Why the 200d SMA is important: The Simple Moving Average (SMA) is the average price of an asset over a certain period of time. It is calculated by adding up the closing prices over a certain number of time periods, and then dividing by that number of time periods. SMA’s are used to measure momentum. The most watched SMA is the 200 day, it is widely recognized as the dividing line between bull and bear territory. The primary trend is considered to be up as long as the market is trading above its 200-day moving average but this trend turns bearish whenever the market closes below this average.
GoldenAgri ~ Symmetrical triangle formation
Golden Agri closed with a white marubozu @ S$0.385 (+0.01, +2.7%) with 23.6m shares done on 5 Feb 2016.
Immediate support @ S$0.375, immediate resistance @ S$0.40.