target for golden agri

Golden Agri-Resources Ltd is the world's second largest palm oil plantation with a total planted area of 433,200 hectares (including small holders) as at 30 June 2010, located in Indonesia. It has integrated operations focused on the production of palm-based edible oil and fat products.

Founded in 1996, GAR is listed on the Singapore Exchange since 1999 with a market capitalisation of US$5 billion as at 30 June 2010. Flambo International Ltd, an investment company, is GAR’s largest shareholder, with a 49% stake in the company. GAR has several subsidiaries, including PT SMART Tbk (“SMART”) and PT Ivo Mas Tunggal. SMART listed its shares on the Indonesia Stock Exchange in 1992.

GAR is focused on sustainable palm oil production. Its primary activities include cultivating and harvesting of oil palm trees; processing of fresh fruit bunch into crude palm oil ("CPO") and palm kernel; and refining CPO into value-added products such as cooking oil, margarine and shortening. Through its subsidiaries, GAR operates 35 palm oil processing mills, three refineries and six kernel crushing plants. It also has an integrated operation in China including a deep sea port, two soybean crushing plants, and production of refined edible oil products.



Please look at the short term daily chart of Golden Agri above for a study of its price action.

The price hit a high of $0.70 on 18 Oct and has since retraced to sit between support of $0.655 (previous high) and $0.645 (61.8% fibonacci retracement).

If this support zone holds, and the price resumes its uptrend, then my near term target price for Golden Agri will be between $0.75 ($0.70 (recent high) + ($0.70-0.65)) and $0.785 (161.8% fibonacci projection).

But if the price of Golden Agri breaks significantly below the 61.8% fibonacci retracement of ($0.645), then it is a pattern failure and the above analysis becomes invalid.