Chart: CPO's daily chart as at July 9, 2012 (Source: iFS.marketcenter.com)
Tuesday, July 10, 2012
CPO testing its near-term downtrend line at RM3200
On June 15, I posted that CPO's downtrend may continue after it broke its long-term uptrend line at RM3200 (here). The sign for a possible extension of the downside move was flashed out when the Bollinger Band began to expand. Well, we can see from the chart below that the anticiapted downside move did not materialize. Instead CPO rebounded back above the RM3000 psychological level and went as far as testing the resistance from the violated long-term uptrend line at RM3200. In addition, the RM3200 level is also the near-term downtrend line resistance (see the chart below). Can CPO break above the near-term downtrend line as well as 'climb' back above that long-tern uptrend line? I think it is not likely within the next few weeks. The more likely scenario is a pullback to the psychological RM3000 before CPO can mount another attempt at the RM3200 level.
Chart: CPO's daily chart as at July 9, 2012 (Source: iFS.marketcenter.com)
Chart: CPO's daily chart as at July 9, 2012 (Source: iFS.marketcenter.com)
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2 comments:
alex,
any update on mnrb? technical or fundamental?
Hi Ryan,
MNRB is now pressing against its intermediate downtrend line that stretched back to 2007. The resistance from that downtrend line is at RM3.10-3.15.
MACD & RSI are fairly positive but the ADX is still low (at 20). I think this is likely to be just a technical rebound. If so, you may want to reduce position at RM3.15. If it manage to break above that level, the stock may turn bullish. We will have to wait & see how the trend develops.
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