CPO has broken below its neckline support at RM2320 a few days ago. As noted earlier (here), this breakdown of the neckline of the Head & Shoulder formation would likely be followed by a test of the short-term uptrend line support of RM2100.
Chart 1: CPO's daily chart as at June 22, 2009_12.30noon (source: ifs.marketcenter.com)
If the short-term uptrend line is also violated, then CPO may test the horizontal line of RM2000-2010. I think the possibility of it testing the next horizontal line of RM1770-1780 is quite remote at the present moment.
Chart 2: CPO's weekly chart as at June 22, 2009_12.30noon (source: ifs.marketcenter.com)
Based on the above, we can expect more weakness ahead for plantation stocks.
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