Monday, October 17, 2011

CPO is still in an uptrend line

On October 10, I posted this article which stated that CPO has broken below the 2 years old uptrend line at RM2900. The chart in that article was a combination of 3 charts, of which two were shrunk to fit with the first chart. The best-fitting exercise caused a bit of distortion and as a result of which I came to the conclusion that CPO has broken below its uptrend line support at RM2900.

Now iFS weekly chart has "expanded", I can have my weekly chart by fitting only 2 charts into one, instead of 3 charts into one chart. The margin of error would be reduced & from the chart below we can see that the 2 years old uptrend line is still intact. The uptrend line support is at RM2800.

With this, the prospect for further recovery in CPO is better. Plantation stocks would obviously benefit from higher prices of CPO, which would add to the recovery for equity market as a whole. This error and the resulting earlier bearish call for the Plantation sector are much regretted.


Chart: CPO's weekly chart from October 2008 to October 7, 2011 (source: ifs.marketcenter.com)
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2 comments:

  1. AnonymousMonday, October 17, 2011 3:30:00 PM

    Hi Alex:

    The charts and graphs in your postings don't appear on my computer. All I see is a dark empty space. When I click to try to open them, what I get is also a big dark empty screen.
    Wonder what's the problem.
    Have a nice day.

    ReplyDelete
  2. Alex LuTuesday, October 18, 2011 4:00:00 PM

    Hi zhouyu44

    I don't know how to trouble-shoot PC problems. You should seek help from a friend or get a professional to help you.

    ReplyDelete