IndoAgri is forming a Rising Wedge and is going to test the 4 in 1 support level at about $2.75. These 4 in 1 supports are 20D MA, 50D MA, Rising Wedge support and 78.6% Fibonacci Retracement Level. Breaking down from this Rising Wedge chart pattern will send Indo Agri stock price to about $2.30. Rising Wedge in an uptrend is a trend reversal chart pattern.
First Resources Fundamental Analysis
Business: First Resources Limited is one of the largest private sector producers of crude palm oil in Indonesia. Its primary business activities are cultivating oil palms, harvesting the fresh fruit bunches from those trees and processing crude palm oil and palm kernel which it sells in Indonesia and internationally.
First Resources Chart Analysis
Currently First Resources is trading at close to 2 years high. The recent pull back to test the Rising Wedge support at about $1.48. If First Resources can hold this support level, the stock will face the next immediate resistance at $1.59. Rising Wedge chart pattern is normally a trend reversal pattern.
In Summary:
Fundamentally the stock looks good. Currently First Resources is trading at its fair value (PE close to 15). Coupled with a potential reversal base on the chart pattern, downside risk is higher than upside potential. First Resources should be kept under watch list and wait for pull back to accumulate for medium to long term investing for capital gain but not for dividend.
Citigroup is currently forming a long term Rising Wedge. Currently Citigroup seems that starting an uptrend from Sept 2010 to Dec 2010 where the C stock price is trading above 20D, 50D and 200D MA. We can see that the 200D MA is trending upwards which is a uptrend sign. C also bounced off from the 200D MA support for the past 3 occasions. Current price looks like a good entry point for long term investment. The resistance is the Rising Wedge Resistance at about $5.00.
