Date of Report: October 25, 2024
Broker: CGS International

Overview

TH Plantations Berhad is an investment holding company based in Malaysia. The company is primarily engaged in the cultivation of palm oil, processing fresh fruit bunches (FFB), and marketing crude palm oil (CPO), palm kernel oil (PO), and FFB. Additionally, it offers management services related to its core business operations.

Stock Performance

On October 25, 2024, TH Plantations was listed as a “Technical Buy” with a last traded price of RM0.64. The stock has shown significant positive momentum, recently closing at a new 2-month high. This uptick is seen as part of a broader bullish movement following a double breakout earlier in the week.

Technical Indicators

• Entry Price Range: RM0.60 – RM0.64
• Support Levels:
  • Support 1: RM0.58
  • Support 2: RM0.56
• Stop Loss: RM0.575
• Resistance Levels:
  • Resistance 1: RM0.68
  • Resistance 2: RM0.72
• Target Prices: RM0.68, RM0.72

Analysis and Forecast

According to the report by CGS International, TH Plantations’ stock has witnessed a renewed buying interest, marked by a double breakout from a bullish wedge pattern and a break above a downtrend line from its 52-week high. The stock is now trading above all key Exponential Moving Averages (EMAs), indicating continued strength.

Additionally, the higher high and higher low sequence observed from the RM0.545 low point suggests the stock could be on the verge of a more substantial upward move. Both the Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) have strengthened, reflecting rising buying momentum.

Aggressive traders are recommended to consider going long either at the current price or on minor pullbacks, with a suggested stop-loss set at RM0.575, just below the last swing low. Potential upside targets include retesting historical resistance levels at RM0.68 and RM0.72.

Analyst Commentary

The technical analysis provided in the report indicates that TH Plantations is exhibiting strong bullish momentum, with recent breakouts validating the upward trend. The improvements in key technical indicators suggest that buying interest is likely to persist, supporting further gains in the stock’s price.

Source: CGS International Trendspotter, October 25, 2024.