CPO testing its downtrend line

CPO is now testing the downtrend line resistance at RM3050-3070. If CPO can break above the downtrend line, the next upleg may begin.


Chart 1: CPO's weekly chart as at Nov 9, 2011 (courtesy of ifs.marketcenter.com)

It looks like CPO could be following the trend of crude oil. See the daily chart for WTIC below.


Chart 2: WTIC's daily chart as at Nov 9, 2011 (source: Stockcharts.com)

However, it must be noted that the broader commodity index, Reuters/Jefferies CRB index has yet to break above its downtrend line.


Chart 3: CRB's daily chart as at Nov 9, 2011 (source: Stockcharts.com)

An upside breakout for CPO would be bullish for the plantation stocks.