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)
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6 comments:

  1. UnknownMonday, July 26, 2010 2:38:00 PM

    Hi Alex,

    Pls comment on GentingSP, thks

    ReplyDelete
  2. AnonymousMonday, July 26, 2010 4:26:00 PM

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

    ReplyDelete
  3. LimMonday, July 26, 2010 4:31:00 PM

    Hi Alex,

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

    Thanks!

    ReplyDelete
  4. Alex LuTuesday, July 27, 2010 8:51:00 PM

    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.

    ReplyDelete
  5. Alex LuTuesday, July 27, 2010 9:05:00 PM

    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.

    ReplyDelete
  6. Alex LuTuesday, July 27, 2010 9:11:00 PM

    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.

    ReplyDelete