First Resources Limited (SGX: EB5) on the Daily timeframe
1. Trend Analysis
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Current Trend: The stock is in a short-term downtrend, with price declining from a recent high of S$1.80 to a current level of S$1.41.
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Recent Price Action:
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Lower Highs and Lower Lows: The formation of lower highs and lower lows confirms the downtrend.
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Price Consolidation: Recent price action shows consolidation between S$1.38 and S$1.45, indicating potential indecision.
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Trend Weakening Signs:
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Decreasing Volume: Volume has been decreasing during the recent consolidation, suggesting a lack of strong conviction among traders.
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Smaller Candlestick Bodies: The appearance of smaller candlestick bodies indicates reduced momentum.
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2. Key Price Action Signals
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Volume Spikes:
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May 15, 2025: A significant volume spike occurred on this date, coinciding with the release of Q1 financial results. The price closed higher, indicating positive market reaction.
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Gap Up/Down:
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May 6, 2025: A gap up was observed following the announcement of the acquisition of PT Austindo Nusantara Jaya. The price continued to rise, confirming bullish sentiment.sginvestors.io+3sginvestors.io+3first-resources.com+3
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Pin Bars and Reversal Patterns:
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May 27, 2025: A bullish pin bar formed at the support level of S$1.38, suggesting potential reversal.
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June 3, 2025: A bearish engulfing pattern appeared near the resistance level of S$1.45, indicating possible downward movement.simplywall.st+1sginvestors.io+1
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Inside Bars and Doji Bars:
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June 4, 2025: An inside bar formed, reflecting market indecision. A breakout from this pattern could signal the next directional move.moomoo.com
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3. Support & Resistance Levels
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Support Zones:
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S$1.38: Recent low and site of bullish pin bar formation.
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S$1.33: 52-week low, serving as a critical support level.simplywall.st
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Resistance Zones:
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S$1.45: Recent high and site of bearish engulfing pattern.
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S$1.50: Psychological resistance and previous consolidation area.
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4. Breakout & Pullback Analysis
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Breakouts:
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May 6, 2025: The gap up and subsequent price increase represent a strong breakout, supported by high volume.
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Pullbacks:
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May 27 – June 2, 2025: Price pulled back to the support level of S$1.38, forming a bullish pin bar, indicating potential continuation of the uptrend.sginvestors.io+1simplywall.st+1
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5. Market Context & Trading Bias
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Market State: The stock is currently in a consolidation phase within a broader downtrend.
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Trader Psychology:
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Bullish Sentiment: Positive reaction to Q1 earnings and acquisition news suggests bullish sentiment.
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Caution: The formation of bearish patterns near resistance levels indicates caution among traders.
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6. Supply, Demand & Liquidity Analysis
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Supply Zones:
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S$1.45 – S$1.50: Area of previous selling pressure and recent bearish patterns.
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Demand Zones:
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S$1.38 – S$1.33: Area of buying interest, evidenced by bullish pin bar and historical support.
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Liquidity Traps:
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No significant liquidity traps identified in the recent price action.
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7. Risk Management Strategy
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Potential Long Entry: Breakout above S$1.45 with increased volume.
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Stop-Loss: Below S$1.38 support level.
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Take-Profit: Around S$1.50, near the next resistance level.reuters.comsimplywall.st+3sginvestors.io+3sbr.com.sg+3
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Potential Short Entry: Breakdown below S$1.38 with increased volume.
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Stop-Loss: Above S$1.45 resistance level.
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Take-Profit: Around S$1.33, near the 52-week low.
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8. Company News (Past 3 Months)
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May 15, 2025: First Resources reported a 74.9% increase in Q1 net profit to US$63.1 million. businesstimes.com.sg
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May 6, 2025: Completed the acquisition of PT Austindo Nusantara Jaya, expanding its plantation assets. reuters.com+5first-resources.com+5sginvestors.io+5
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April 28, 2025: Held Annual General Meeting, discussing future strategic directions. sginvestors.io
Trade Summary:
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Long Scenario: Buy First Resources Limited (SGX: EB5) on a confirmed breakout above S$1.45 resistance, with a stop-loss set at S$1.38 and a target at S$1.50, offering a risk-reward ratio of approximately 1:1.
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Short Scenario: Sell First Resources Limited (SGX: EB5) on a confirmed breakdown below S$1.38 support, with a stop-loss set at S$1.45 and a target at S$1.33, maintaining a risk-reward ratio of approximately 1:1.
Confidence Rating: 6/10
Key Levels to Watch:
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Support: S$1.38, S$1.33
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Resistance: S$1.45, S$1.50
Pre-Trade Checklist:
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Confirm breakout or breakdown with increased volume.
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Monitor for any new company announcements or market news.
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Ensure risk-reward ratio aligns with trading plan.
Disclaimer:Please note that this analysis is for educational purposes only and should not be taken as investment advice. Trading involves significant risk, and you should consult with a financial advisor before making any decisions.
Dividend: 5.21%
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