Date: 28 October 2024
Broker: UOB Kay Hian
Technical Buy Recommendation
UOB Kay Hian has issued a “Trading Buy” recommendation for First Resources (FR SP), highlighting its strong technical setup. The current price for First Resources is S$1.50, with an advised trading buy range between S$1.47 and S$1.48. The target price is set at S$1.63, suggesting upside potential based on technical indicators.
Bullish Technical Indicators
Several key technical indicators suggest that First Resources is positioned for a continued upward trend:
- Price Above Ichimoku Cloud: The stock price is trading above the Ichimoku cloud, a positive signal indicating sustained bullish momentum.
- Bullish Crossover in Conversion and Base Lines: Both conversion and base lines have crossed in a bullish manner, reinforcing the potential for price appreciation.
- Rising MACD: The Moving Average Convergence Divergence (MACD) is in a rising trend, supporting a bullish outlook for the stock.
Trade Parameters and Risk Management
UOB Kay Hian advises setting a protective stop at S$1.43 to manage downside risk. The anticipated timeframe for this trade is approximately 1–2 weeks, with the trade idea recommended only if the stock hits the entry range within three trading days.
Institutional Research Support
This technical buy recommendation is aligned with UOB Kay Hian’s fundamental outlook on First Resources, which holds a “BUY” rating with a target price of S$1.65. This dual support from both technical and fundamental perspectives strengthens the case for First Resources as an attractive investment opportunity.
