PPB- tested its intermediate downtrend line

Like TWS, PPB has also staged a strong rebound. Early this morning, the stock rose to an intra-day high of RM13.58. This means that the stock has tested its intermediate downtrend line cum horizontal line at RM13.50. A breakout above this level will be positive for the stock as this may signal the change from a downtrend to either a sideway movement or even an uptrend (not very likely). I am however inclined to believe that the first attempt at the downtrend line will not succeed as those, who had bought into the stock at RM12, will take profit, while others may use the opportunity to simply reduce their position.

The rise of PPB reflects the recovery of CPO prices over the past two weeks. Is the worst over for CPO? I will look at that at the next post.


Chart: PPB's daily chart as at Oct 23, 2012_11.00am (Source: Quickcharts)