Thursday, March 06, 2014
PPB: Broke above a strong resistance!
Commodity prices have risen significantly ince the start of the year. From Chart 1, we can see that Reuters/Jefferies CRB Index has increased from a low of 275 at the beginning of the year to 306 yesterday, That's an increase of 11% in 2 months!!
Chart 1: CRB's weekly chart as at Mar 5, 2014 (Source: Stockcharts)
This has prompted a slow recovery among the commodity forms, such as Olam, Noble and Wilmar (on SGX) and also PPB (on our local bourse). From Chart 2, we can see that PPB has broken above its downtrend line as well as horizontal line at RM16.00. Its next strong resistance is at the horizontal line RM18.00.
Chart 2: PPB's weekly chart as at Feb 26, 2014 (Source: Tradesignum)
Olam may have broken above its long-term downtrend line but the same may not be said for Noble & Wilmar (an associate of PPB).
Chart 3: Olam's weekly chart as at Mar 5, 2014 (Source: Tradesignum)
Chart 4: Noble's weekly chart as at Mar 5, 2014 (Source: Tradesignum)
Chart 5: Wilmar's weekly chart as at Mar 5, 2014 (Source: Tradesignum)
Based on the bullish technical breakout for CRB index and PPB, PPB could be a trading BUY.
In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, PPB, Olam, Noble & Wilmar.