Wednesday, October 14, 2009

CPO broke above its medium-term downtrend line

CPO has broken above its downtrend line at RM2150 on Oct 12. The MACD indicator has also put in a positive crossover. With these 2 signals or readings, the recovery in CPO prices should be more assured in the weeks ahead.


Chart: CPO's daily chart as at Oct 14, 2009 (Source: ifs.marketcenter.com)

Based on this, you can expect plantation stocks to rise in the weeks ahead.
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11 comments:

  1. JRWednesday, October 14, 2009 6:09:00 PM

    Hi Mr. Alex,

    Possible bullish trend for CPO stocks ?

    Apperciate your feedback.

    Thks

    ReplyDelete
  2. solomonWednesday, October 14, 2009 8:22:00 PM

    A bit abnormal, market keep on going up and up....clock ticking towards the next fall.

    Assuming the retailers are back into rotational play in plantation, maybe one could consider a quick punt on Dutaland or Mvest?

    ReplyDelete
  3. Alex LuThursday, October 15, 2009 9:57:00 AM

    Hi JR,

    I think plantation stocks should rise up in tandem with higher CPO prices. Somehow, one does not get the feeling that's happening as the price movement is extremely slow.

    ReplyDelete
  4. Alex LuThursday, October 15, 2009 9:59:00 AM

    Hi Solomon,

    Dutaland looks interesting. It is resting at its medium-term uptrend line & could well benefit from positive news flow (such as higher CPO prices).

    ReplyDelete
  5. KSThursday, October 15, 2009 4:06:00 PM

    dear alex
    can i collect twsplant
    rgds

    ReplyDelete
  6. Alex LuThursday, October 15, 2009 5:13:00 PM

    Hi KS,

    TWSPlant (closed at RM1.70 today) is in a medium-term uptrend line, with support at RM1.64-65. However, it is blocked by a short-term downtrend at RM1.74-75. I think it is relatively safe to accumulate the stock now and add onto the position if an upside breakout is triggered.

    ReplyDelete
  7. KSThursday, October 15, 2009 5:53:00 PM

    dear alex
    my other half is interested in
    thplant. your comments pls.
    rgds

    ReplyDelete
  8. Alex LuFriday, October 16, 2009 8:53:00 AM

    Hi KS,

    THPlant is trapped in a descending triangle. It is approaching the apex of that triangle soon. Support at RM1.54-55 with breakout at RM1.60. A breakout too close to the apex normally give rise to weak trend. I am inclined to think that this stock will continue to trade sideway in a range-bound fashion at RM1.50-1.60.

    ReplyDelete
  9. UnknownMonday, October 19, 2009 8:09:00 PM

    This comment has been removed by the author.

    ReplyDelete
  10. UnknownMonday, October 19, 2009 8:21:00 PM

    Hi Alex,
    Any comment for "Cepat"? I still holding some with average price RM1.03......

    ReplyDelete
  11. Alex LuTuesday, October 20, 2009 8:22:00 AM

    Hi Tan,

    Cepat tested its medium-term uptrend line at RM0.91 on Oct 7. It immediately rebounded broke above its short-term downtrend line at RM0.93. The stock is in an upward channel, with upper boundary at RM1.10-20. The stock is a trading BUY.

    ReplyDelete