GOLDEN AGRI-RESOURCES

The STI chart is pretty depressing. Apparently, it was the lowest close since 2003. To me, 1570 is key. Next would be 1474. If the STI were to breach these two levels, then I am afraid that we are looking at the 1205 level seen in Mar 2003.

Are there any bright spots in this gloom? Have a look at Golden Agri. Golden Agri-Resources is the world's second largest oil plan plantation, by planted hectarage, with the world's largest total land bank. This counter caught my eye as it has been very active during the past few weeks compared with the general sluggishness of the rest of the market. Its weekly chart is shown above. Like the STI, it too shows a spectacular descend, with its high of $1.25 in Feb 08 to a recent low of $0.155 in Oct 08 (a whopping 88% loss). Since then, it has been on a steady uptrend. It appears to be undergoing a slight consolidation, or correction, probably in line with the general weakness in the STI, but as long as the price stays above the middle of the Bollinger Band, i would say that the uptrend is holding pretty well. Notice that the volume has been consistently high since Oct 08, coinciding with the general rise in its share price. It would appear that people are accumulating this stock. To me, this counter is certainly worth paying attention to.