CPO may test its short-term uptrend line support of RM2100

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.