CGS-CIMB Research

Rimbunan Sawit - Climbing Higher

Publish date: Wed, 28 Feb 2024, 11:03 AM
CGS-CIMB Research

The stock has been stair-stepping higher since breakout of its sideways trend in late December. The higher highs and higher lows structure from RM0.14 low late last year keeps the uptrend intact. The recent pullback into the 20-day EMA and 50-day EMA range represents a good opportunity to buy on weakness. The breakout of the inside day pattern yesterday likely suggests that the stock is ready to kick on from here.

The Moving Average Convergence Divergence (MACD) has flattened a tad but stayed in the positive zone while the Relative Strength Index (RSI) is also edging higher after holding above the neutral 50-pts level. Both indicators suggests that the bulls have the upper hand right now..

We think that aggressive traders may want to go long here or on weakness with a stop-loss set at RM0.185 (a tick below the last swing low). On the upside, prices may continue to work their way higher to test the historical resistances at RM0.22 and RM0.24 next.

Source: CGS-CIMB Research - 28 Feb 2024

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