Monday, July 26, 2010

CPO clawed back above its medium-term uptrend line

On July 7, I have posted about a death cross for the Plantation index as well as CPO breaking below its medium-term uptrend line support at RM2450 (here). While the death cross persists for the Plantation index (see Chart 1), CPO has rebounded from RM2300 in early July to a recent high of RM2600 (see Chart 2). With this rebound, CPO has managed to claw back above its medium-term uptrend line (see Chart 3). The recovery in CPO could lead to a rebound in Plantation index & stocks, which could negate my earlier call to "reduce our shareholding of plantation stocks".


Chart 1: Plantation's daily chart as at July 26, 2010 (Source: Quickcharts)


Chart 2: CPO's daily chart as at July 23, 2010 (Source: ifs.marketcenter.com)


Chart 3: CPO's weekly chart as at July 16, 2010 (Source: ifs.marketcenter.com)

6 comments:

Unknown said...

Hi Alex,

Pls comment on GentingSP, thks

wong said...

hi alex. can u comment on YSPSAH ? thx alots.

Lim said...

Hi Alex,

Can you pls comment on Zhulian? It has recently gave share issue.

Thanks!

Alex Lu said...

Hi jonker

Genting SP will be testing its recent high of S$1.30 soon. That's a very strong resistance, which may not crack on the first attempt. As such, it could be a trading SELL on the first attempt. However, a break above this level would be bullish for the stock.

Alex Lu said...

Hi wong

YSPSAH has tested its horizontal resistance at RM1.30 three times, without success. Its supports are at RM1.18 & RM1.10- its 50 & 200-day SMA lines.

YSPSAH is a small-cap which makes a net profit of about RM12-13 million per annum or EPS of 12-13 sen. At current price, it is trading at its fair value, based on PER of 10 times.

Alex Lu said...

Hi Lim

Zhulian had a 1-for-3 bonus issue. Its share price has run up from RM0.70 in Mar 2009 to a high of RM2.20 in June this year. On the weekly chart, the MACD indicator has flashed a negative cross-under. I expect a side-way movement with a downward bias. Its strong support is at RM1.80-1.90.