Food Empire

Food Empire (F03): Mark Up
 
Technical Observations:
Stock was in Re-accumulation phase since earlier 2017 this year. Stock broke out (Line change) from its S$0.64 resistance with strong volume. This provided traders with good evidence that the stock is entering into the Mark Up phase. Trend/Momentum indicator also supported the observation with a MACD Bullish Crossover, signaling change in momentum to Bullish mode.

The Line change was initiated by a positive earnings results, reporting that the group's change in business model proofs to be a success. Its upstream business (plants in India and facilities in Malaysia) are seeing growth momentum.

The group sees further organic growth with further expansions via M&A in the pipeline for both its upstream and downstream markets.



Probable Trade Set-up:
E: S$0.67
S: S$0.605
T: S$0.75 / S$0.85
R/R Ratio: 1.23x / 2.77x