Plantation stocks may recover on the back of firm CPO prices

With CPO index still holding onto its recent gain, the current sharp correction in the equity market may have thrown up some interesting Trading Buys amongst the plantation sector.


Chart 1: CPO's weekly chart as at January 17th (from ifs.marketcenter.com)

Amongst them are Sime, IOICorp & HSPlant, which had all tested their respective horizontal support & recovered. The horizontal supports are at RM11.50-60 for Sime; RM7.90-8.00 for IOICorp; and, RM3.30 for HSPLant.


Chart 2: Sime's daily chart as at January 17 (courtesy of Quickcharts)



Chart 3: HSPlant's daily chart as at January 17 (courtesy of Quickcharts)



Chart 4: IOICorp's daily chart as at January 17 (courtesy of Quickcharts)

KLK had corrected less & has yet to tested its horizontal support of RM17.00-20.


Chart 5: KLK's daily chart as at January 17 (courtesy of Quickcharts)

My preference is Sime, at RM11.50-60 level.