Rimbunan Sawit Bhd (RIMB.KL)

Overview:

Rimbunan Sawit Berhad (RSB) is engaged in the business of investment holding and the provision of management services. The Company through its subsidiaries is engaged in cultivation of oil palms. It is a palm oil producer and processor of crude palm oils and oil palm seeds. 
During the year ended December 31, 2011, the Company acquired 100% interest in Burung Tiong Helicopter Sdn Bhd. 
As of December 31, 2011, the Company owns approximately 91,793 hectares (ha) of plantation land in Miri, Kuching and Sibu, Sarawak. 
During 2011, the Company acquired an additional 15% interest in Nescaya Palma Sdn Bhd (NPSB), Woodijaya Sdn Bhd (Woodijaya), Novelpac-Puncakdana Plantation Sdn Bhd (Novelpac) and PJP Pelita Biawak Plantation Sdn Bhd (Biawak). 
On December 30, 2011, the Company acquired a parcel of land with oil palm plantation from Sheba Resources Sdn Bhd. 
In July 2012, the Company acquired RSB Palm Oil Mill Sdn. Bhd.

Rimbunan Sawit Bhd

Trading Plan:


1) Trendline - Broke below the 20MA >Downtrend line (Bearish)
2) Volume: High but price went down >Price Volume Divergence3) MACD: Green (Positive>Bullish)

4) Smoothed RSI : Stagnant and hovering above 30%. Still in standby waiting to break up or below 31%. (Oversold)

5) Support/Resistance - Formed higher low and higher high  (Bullish)

6) Beta: 1.567) Candlestick - Strong hammer on the bottom triangle.

8) Pattern - Ascending triangle. If break above from 0.92 , the TP for this pattern is 1.00 (8.7%)


Entry: RM 0.90, 

Cut loss: RM 0.88 

Profit: RM 0.94 or RM 1.00

RRR (Risk to Reward Ratio)> 1 : 2 or 1:5


Scenarios Analysis:
1) Break above 0.92 on the next following day
2) Retrace to 0.88 and then incline back to test the 0.92
3) Break below 0.88 and negate the ascending triangle pattern

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