• The stock rallied sharply after breaking out of its bullish flag pattern in the middle of July. It has tested the May highs of S$1.49 yesterday and managed to breakout above it.
• The new-year highs however were not accompanied by new highs in its indicators. The MACD is positive but is nowhere near the highs in May. This suggests that investors should be wary of buying now. Its RSI is now overbought suggesting that a short term pullback is likely.
• Prices could adjust downwards slightly to neutralise the overbought RSI soon. Buy on weakness with support seen at S$1.36 and S$1.27. Upside resistance is seen at S$1.60 and S$1.74.
Indofood Agri Resources Limited is an integrated agribusiness company. The Company and its subsidiaries are involved in research and development, oil palm seed breeding, oil palm cultivation and milling. Indofood Agri Resources also refines, brands and markets cooking oil, margarine, shortening and other palm oil products.
Golden Agri-Resources (GGR SP; S$0.415) – BUY
• The stock’s long term uptrend is still intact. It broke out of its short term downtrend channel last week and in now rallying to test the middle band resistance of its long term uptrend channel.
• Its indicators currently suggest that the stock is could kick on higher. However, in the short term, a minor retracement is likely as there is some selling pressure near the middle resistance.
• The stock is still a buy on weakness as long as prices stay above the 50-day SMA at S$0.37-0.375. A breakout above the middle band resistance at S$0.415 could see the stock push on towards S$0.455 and even S$0.50 next.
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.
Kencana Agri (KAGR SP; S$0.315) – BUY
• The stock broke out of its consolidation pennant three weeks ago. It is now rallying after forming a base above its 30-day and 50-day SMA at S$0.27-0.28. The moving average now acts as strong support for the stock.
• Indicators have continued to improve and remain in buy mode. The upside resistance is seen at S$0.345, the May highs. A breakout above could see the stock test S$0.375, its high since inception.
• Aggressive investors may want to buy now but place a stop loss at S$0.265 or below. S$0.245 is the next support.
Kencana Agri Ltd. produces crude palm oil and crude palm kernel oil with oil palm plantation. The Company operates a bulking terminal and logistics services for storage and transportation purpose. Kencana Agri Ltd. also operates a renewable biomass power plant to generate electricity by utilizing waste recycled from the crude palm oil process.
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3 comments:
Your analysis in Golden Agr. was very precise! The price now is 0.42. I bought it at 0.365 and sold for 0.385. never believed this counter can goes that far, I was wrong!
A wrong decision cost me a few thousands dollars!
you are very accurate, thanks alot i bought at 0.425 and sold it just now at 0.47, love ya :)
wasted i did not buy indoagri, but still thanks for your accuracy
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