Report Date: October 24, 2024
Broker: CGS International

Company Overview

Innoprise Plantations Berhad, through its subsidiary, is involved in the cultivation of oil palm and the production of crude palm oil and palm kernel. The company operates in the plantation sector and focuses on maximizing yield from its palm oil operations.

Recent Performance and Technical Analysis

The report highlights that Innoprise Plantations closed at its 52-week high on October 23, 2024, following a week-long triangle breakout. This strong performance was supported by a spike in trading volume, which was 2.7 times higher than the 15-day moving average. The stock has been showing a pattern of higher highs and higher lows, indicating a bullish trend.

Entry and Price Targets

• Entry Price(s): RM1.53 – RM1.57
• Support Levels:
  • Support 1: RM1.49
  • Support 2: RM1.40
• Resistance Levels:
  • Resistance 1: RM1.69
  • Resistance 2: RM1.76
• Stop Loss: RM1.48

The report suggests that aggressive traders may consider entering at the mentioned entry prices or on weakness, with a stop-loss set marginally below the 50-day EMA at RM1.48. The anticipated upside targets are set at RM1.69 and RM1.76.

Technical Indicators

• Moving Averages: The chart analysis shows the 200-period, 50-period, and 20-period exponential moving averages, providing an indication of long-term and short-term trends.
• MACD (Moving Average Convergence Divergence): The MACD confirmed a golden cross, which is a bullish signal that suggests further upward momentum.
• RSI (Relative Strength Index): The RSI has strengthened, indicating that buying momentum is rising. This supports the forecast that the stock may continue its upward trend.

Trading Strategy

The broker recommends a “Technical Buy” for Innoprise Plantations, noting that the stock’s current technical setup favors bullish traders. The recent increase in volume and the technical indicators suggest a continuation of the upward trend.

Aggressive traders may consider going long (buying) with the expectation of testing the resistance levels at RM1.69 and RM1.76. The recommendation is supported by the positive momentum shown in the MACD and RSI, as well as the stock’s performance pattern of achieving higher highs and lows.