Date: October 24, 2024
Broker: CGS International Securities Pte. Ltd.
Company Overview
Bumitama Agri Ltd. is involved in the cultivation and harvesting of oil palm trees. The company operates oil palm plantations primarily in Indonesia. Its main business activities include processing fresh fruit bunches (FFB) from its plantations, plasma plantations, and third-party suppliers into crude palm oil (CPO) and palm kernel (PK). Bumitama sells these products in the Indonesian market.
Technical Snapshot
- Price Action: The stock’s price action suggests a corrective up move, which indicates a likely continuation of the uptrend. Bumitama has broken out of a bullish flag pattern, signaling a bullish continuation. The volume levels support this uptrend, crossing above the 20-day period average.
- Trend Analysis: Bumitama has been trending within an uptrend channel since March 2020, indicating consistent growth. Technical indicators such as the Ichimoku indicator show three bullish golden crosses, further supporting the bullish trend. Additionally, the MACD histogram is positive, and the MACD/signal line remains elevated above the zero line, which is a strong indicator of momentum.
Key Technical Indicators
- Support Levels:
- Support 1: S$0.660
- Support 2: S$0.600
- Resistance Levels:
- Resistance 1: S$0.715
- Resistance 2: S$0.795
- Target Prices:
- Target 1: S$0.820
- Target 2: S$0.850
- Target 3: S$0.910
- Target 4: S$0.990
- Other Technical Indicators:
- The 23-period Rate of Change (ROC) has risen above the zero line, indicating a shift in momentum.
- The Directional Movement Index (DMI) shows confirmation of bullish strength.
Analyst Comments
The analyst, Chua Wei Ren, has highlighted that the stock continues to show signs of strength. The recent breakout from the bullish flag suggests that Bumitama’s price could see further gains. Additionally, the MACD, ROC, and DMI indicators all point towards a sustained bullish trend. Investors might consider accumulating the stock given the consistent uptrend and favorable technical indicators.
Conclusion
Bumitama Agri Ltd. has shown robust technical signals, suggesting that the uptrend remains intact. Investors may look to capitalize on the potential price targets set by CGS International Securities, driven by strong technical patterns and supportive indicators.
