Date: October 15, 2024
Broker Name: CGS International
Stock Overview
Rimbunan Sawit (Stock Code: 5113) is involved in the cultivation of oil palms and processing of palm oil. The company owns approximately 13,500 hectares of plantation land and operates its own palm oil mill, positioning itself as a significant player in Malaysia’s palm oil industry.
Technical Analysis
As of October 15, 2024, the stock price of Rimbunan Sawit is RM0.25. The stock has been closing at its day’s high for the last few sessions, which is a positive signal for near-term momentum. After a period of consolidation over the past five months, the stock appears poised for a breakout.
Key Support and Resistance Levels
- Entry Price: RM0.245 to RM0.25
- Support Levels: RM0.230 (Support 1), RM0.215 (Support 2)
- Resistance Levels: RM0.270 (Resistance 1), RM0.285 (Resistance 2)
- Stop Loss: RM0.225
Target Prices
Rimbunan Sawit is targeting an upward breakout, with potential price targets set at RM0.270 and RM0.285. The 52-week high of RM0.285 serves as a key resistance level that traders will watch closely.
Technical Indicators
- Moving Average Convergence Divergence (MACD): Showing signs of easing pressure, indicating that bearish momentum is weakening.
- Relative Strength Index (RSI): The RSI has hooked up again, potentially signaling that the bulls are preparing for a charge upwards.
Investment Strategy
CGS International suggests that aggressive traders may want to consider going long on Rimbunan Sawit either at current levels or on weakness, with a stop-loss set at RM0.225. The stock is showing signs of an upcoming breakout to test the July high of RM0.27 and the 52-week high of RM0.285.
