Date of Report: October 28, 2024
Broker: CGS-CIMB Securities
Company Overview
First Resources Ltd is an upstream operator in the palm oil industry, primarily engaged in cultivating and harvesting oil palms. The company focuses on processing fresh fruit bunches (FFBs) into crude palm oil (CPO) for both local and international markets.
Recent Price Movement and Technical Analysis
First Resources’ share price recently showed a strong upside potential, attributed to weak resistance levels. Following a significant rebound from a previous buy limit of S$1.35, the stock achieved over 11% gains. Currently, the stock price is trending above all major technical indicators, reflecting a bullish outlook. CGS-CIMB suggests that recent price action indicates potential for further upside, driven by technical indicators.
Technical Snapshot:
- Entry Prices: S$1.50, S$1.35, S$1.32
- Supports: S$1.41, S$1.33
- Stop Loss: S$1.30
- Resistance Levels: S$1.48, S$1.75
- Target Prices: S$1.55, S$1.62, S$1.81, S$2.00
Key Technical Indicators
- Ascending Triangle Pattern: Weekly charts indicate an accumulative ascending triangle, suggesting weakening resistance levels after multiple tests.
- Bollinger Bands: A contraction phase is observed, with potential for expansion signaling an upward move.
- Ichimoku Indicators: Prices are trading above all ichimoku indicators, supporting a bullish stance.
- MACD Indicator: The MACD histogram is positive, with the MACD and signal lines elevated above the zero line.
- Stochastic Oscillator: This oscillator is rising, indicating upward momentum.
- Rate of Change (ROC): The 23-period ROC has crossed above the zero line, signaling positive price momentum.
- Directional Movement Index (DMI): The index confirms a bullish trend with strong directional strength.
- Volume Analysis: Trading volume has exceeded the 20-day moving average, further reinforcing the bullish sentiment.
Analyst Commentary
CGS-CIMB’s technical analysis, led by analyst Chua Wei Ren, indicates that First Resources Ltd has significant upside potential based on its current technical positioning and market momentum. The upward movement is supported by a combination of volume increase and positive momentum indicators, positioning it well for potential gains in the near term.
