Date: October 22, 2024
Broker: CGS International

Overview

Three-A Resources is a Malaysian company that specializes in the manufacturing and distribution of food and beverage ingredients. The company produces a range of products including caramel, maltose, and various seasoning powders, catering to both local and international markets.

Current Stock Performance

• Last Price: RM 0.88
• Entry Price Range: RM 0.93
• Support Levels:
  • Support Level: RM 0.85
• Resistance Levels:
  • Resistance 1: RM 0.975
  • Resistance 2: RM 1.00
  • Resistance 3: RM 1.13
• Stop Loss: RM 0.85
• Target Prices: RM 0.975, 1.00, 1.13

Technical Analysis

The stock of Three-A Resources has seen a recent dip, trading slightly below its entry price at RM 0.88. However, the stock has shown resilience around the support level of RM 0.85, suggesting a consolidation phase that may precede a recovery.

The technical indicators highlight a stable setup, with the potential for the stock to bounce back towards its resistance levels at RM 0.975 and RM 1.00. Further upward movement could see the stock targeting RM 1.13, which offers significant upside potential. The company’s steady performance in the food ingredients sector continues to support its long-term outlook.

Trading Strategy

Traders may consider entering a long position at or near the current level of RM 0.88, with a stop loss set at RM 0.85 to manage risk. The targets of RM 0.975, RM 1.00, and RM 1.13 provide a clear path for potential gains, offering a favorable risk-reward ratio for those willing to trade on the stock’s recovery prospects.

Analyst Comments

Three-A Resources appears poised for a possible rebound, with strong technical support levels in place. The recent price movements suggest a period of consolidation, which could lead to a renewed upward trend if key resistance levels are tested and broken. The company’s established position in the food ingredient market provides additional confidence in its ability to sustain future growth.