Technically buy IndoFood Agri, Golden-Agri, Kencana Agri

IndoFood Agri Resources (IFAR SP; S$1.52) – BUY

• 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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IndoAgri - consider to take profit

IndoAgri=$1.11 (Trendline resistance at $1.12... Take profit now)

IndoAgri - Second lows... wait more

IndoAgri=$1.03 (Second lows...wait for divergent signal to buy)

GoldenAgr too much volume

Golden Agri - Fell from $0.40 to $0.295 within 7 trading days. Volume exploded to 161mln by midday. If "Volume kills trend", it should stage a technical rebound from here. Similarly, Indo Agri is also a potential technical rebound candidate.

Indo Agri filling the gp?

IndoAgri=$1.37 (Gap waiting to be filled)

IndoAgri - Bullish Flag

IndoAgri = $1.24 (Bullish Flag), but STI appears to be weak, so...

Golden Agr and Indo Agri - after the pull back

GoldenAgr=$0.35 (After pullback from 200DMA......a flag formation has formed)


IndoAgri=$0.815 (like Golden Agri, it also is forming a flag formation)

IndoAgri break out resistance

IndoAgri=$0.705 (Heading towards 200D MA after broke out the $0.65 resistance)

Sell Wilmar, Golden Agri, Indofood Agri

Wilmar International (WIL SP; S$3.26) – SELL

• The stock is still holding on to its short-term uptrend channel after hitting a temporary bottom at S$1.76. However, the may be little upside for now, as there is a cluster of resistances at S$3.38-S$3.46. Next upside target is at S$3.68 and S$3.88.

• It is poised for further correction as the indicators are showing signs of exhaustion. MACD is losing momentum while RSI has also hooked down.

• Despite our immediate negative view on the stock, it is unlikely that the pullback may derail its longer term uptrend. Support is at S$3.12 and S$3.02 (also its 30-day SMA). Take profit now.

Golden Agri-Resources (GGR SP; S$0.295) – SELL

• The stock is still holding above its 30-day SMA but it appears that momentum is easing after it fails to hold above S$0.305. Consolidation may take place after recent rally as sellers at S$0.305 and S$0.33 would cap gains.

• MACD is still positive but RSI indicator has hooked down. Mixed technical readings usually point to volatility.

• Daily chart still looks conducive but could succumb to short-term weakness. Initial support is seen at S$0.28 followed by S$0.26. Time to take some profits, possibly near its resistances. However, there could be buying opportunities near its supports.

Indofood Agri Resources (IFAR SP; S$0.625) – SELL

• The stock looks toppish after it failed to overcome recent high at S$0.655. The formation of a black candle coupled with the easing technical landscape suggests that there are downside risks to the stock.

• MACD is weakening while RSI also hooks down. Initial support is seen at S$0.59 followed by S$0.57. A fall below its 30-day SMA at S$0.55 would paint a very bearish outlook on the stock.

• It needs to cut above the S$0.67 resistance to conclude its sideways pattern but chances are remote at this juncture. Sell into strength.

Indo Agri - Likely more upside in the medium term

- Since the Oct ’08 low was reached, Indo Agri has been trading within a 4.5-month uptrend channel. Although a technical correction could happen soon after its recent rally, we still expect Indo Agri to extend its recovery to test the top channel line again in the medium term.

- Over the last 2.5 months, OBV has indicated a positive divergence to the price action, providing a strong indication of more upside to come. The MACD indicator has not only just cut upwards but has also cross the centre line, further supporting our bullish view for this counter.

- Immediate resistance has been identified at $0.64 (recent peaks), followed by $0.72 (top channel line)

- Immediate support is likely to be at $0.535 (recent resistance-turned support), followed by $0.455 (recent low and lower channel line).

IndoAgri = $0.605

Throw back to $0.59 is a trading buy