Date of Report: October 15, 2024
Broker: CGS International

Company Overview

Rimbunan Sawit Berhad is engaged in the cultivation of oil palms and the processing of palm oil. The company owns approximately 13,500 hectares of plantation land and operates its own palm oil mill. Rimbunan Sawit focuses on producing crude palm oil and palm kernel for the local and international markets.

Technical Analysis and Stock Movement

As of October 15, 2024, Rimbunan Sawit has exhibited positive movement, showing signs of a potential rebound. Recent trading activity has seen the stock closing at its daily high for consecutive sessions, signaling that the bulls are regaining control.

• Current Stock Price: RM0.25
• Entry Price Range: RM0.245 to RM0.25
• Key Support Levels:
  • Support 1: RM0.230
  • Support 2: RM0.215
• Key Resistance Levels:
  • Resistance 1: RM0.270
  • Resistance 2: RM0.285
• Stop Loss: RM0.225

Price Trends and Indicators

The stock has been consolidating within a five-month triangle pattern, and with strong recent closes, the market appears poised for a potential breakout. The Moving Average Convergence Divergence (MACD) shows easing pressure, while the Relative Strength Index (RSI) has turned upward, suggesting that the bulls may be preparing for a rally.

With these indicators showing improving momentum, there is a strong possibility of an upward move in the near term. Traders may want to consider entering the stock at current levels or during periods of weakness, with a stop-loss set at RM0.225.

Target Prices

Based on technical analysis, Rimbunan Sawit’s upside potential is as follows:

• Target 1: RM0.270 (testing July high)
• Target 2: RM0.285 (52-week high)

Investment Strategy

The stock has been in a consolidation phase but is showing signs of an impending breakout. Strong closes in recent sessions indicate that buying interest is picking up. Traders are advised to go long with a stop-loss at RM0.225. The potential for testing the July high of RM0.270 and the 52-week high of RM0.285 is strong if the momentum continues.

Conclusion

Rimbunan Sawit is coming back to life after a prolonged consolidation phase. The stock’s technical signals suggest a possible breakout, making it an attractive option for traders looking for short-term gains.

Report compiled by: CGS International, Malaysia