Commodities on the rise – Indofood and Noble | Technical Analysis | Singapore Stocks

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5js+090610Currently, I am long on indofood, and you can see from the chart that it is in a nice uptrend channel with quite some space to its next level of resistance at 2.58. Olam recently exhibited a similar pattern.

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Noble seems to be the laggard in the commodities sector, but it has found decent support, also exhibiting a double bottom test, followed by a pullback. This double bottom pullback pattern is very bullish, plus it has just broken out of the price channel. 


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2 replies
  1. Yokiesan
    Yokiesan says:

    HI, i would like to gather some feedback on indofood agri? on it's valuation or intrinsic value. I dunno much about commodities but i see a raise in sugar and oil might boast the shares prices on this counter and golden agri. Just wanna know is the price now at 2.67 overly priced? or there is still a upward potential?

    Or is Golden Agri a better investment?

    Reply
  2. Spencer
    Spencer says:

    It really depends on what you mean by overpriced. Valuation inputs and subjectivity largely determines the output target price.

    Here are some analyst calls:
    10/27/2010 Golden Agri 0.68 GS
    10/26/2010 Golden Agri 0.78 OCBC
    10/22/2010 IndoAgri 3.10 DBS
    10/11/2010 IndoAgri 2.64 CIMB
    9/22/2010 IndoAgri 2.30 MS

    Technically, both look rather good for the long-term, since they are making new highs. Generally, commodities are expected to go up when the USD is low and inflation kicks in.

    Reply

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