• Golden Agri (GGR) posted a dark cloud cover candle last week. It is also trading very near a cluster of resistances, which increases the chance of a reversal. S$0.385-0.40 and S$0.42 are strong resistances.
• Technical indicators are starting to weaken with the MACD and RSI hooking downwards. RSI has also issued a sell signal last week.
• Any rebound towards the resistance levels should be seen as a chance to sell. Immediate support is at S$0.35, but we do not expect this level to hold.Stronger support is at S$0.32 and S$0.29.
Golden Agri-Resources Limited cultivates, harvests, processes, distributes, and sells crude palm oil and palm kernel. The Company also refines crude palm oil into cooking oil, margarine, and shortening for sale and distribution.
Swiber Holdings (SWIB SP; S$0.515) – SELL
• Appears to be hitting robust resistances. The bearish implication of last Thursday’s candle would likely be felt soon. Take profits now as resistance at S$0.525 and S$0.56 is likely to cap any more upside for now.
• MACD is flattening out suggesting that the buying momentum is starting to ease. RSI has hooked up again but is still below its previous highs.
• A break below the S$0.495 could see more selling pressure set in. The next support is at S$0.445 and S$0.385.
Swiber Holdings Limited is an offshore marine support company. The Company services include engineering, procurement, and construction services.
Fraser & Neave (FNN SP; S$2.71) – SELL
• The stock is now at a critical juncture. It needs to breakout and close above the S$2.72-2.75 resistance trend line to turn bullish again. If the resistance is broken, then the next resistance is at S$3.00.
• However, we think that this resistance will not give way so easily. MACD and RSI are still marginally positive but they are below their previous highs. It could potentially be a negative divergence here but we need further confirmation.
• Nevertheless, we think that it may be wise to take some profit here. If the breakout does take place, then investors could still get back in albeit at a slightly higher level. However, if the breakout fails to materialise, then it could ease to test its support at S$2.55 and S$2.38.
Fraser and Neave Limited produces and sells soft drinks, beer, stout, dairy products, and glass containers. The Company also operates publishing and printing businesses and develops and invests in properties.
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