CPO & Plantation index may have peaked

Plantation index tested its all-time high at around 8950 on February 14. Since then, this index has been drifting lower.

Chart 1: Plantation's monthly chart as at May 4, 2012 (Source: Quickcharts)

From the CPO weekly chart below, we can see that the Parabolic SAR (short for 'stop-and-reversal' indicator) has moved above the CPO price. The immediate support for CPO is at the horizontal line at RM3200.


Chart 1: CPO's weekly chart as at June 24, 2011 (source: ifs.marketcenter.com)

My gut feeling is that CPO has put in a top for this year. The same goes for Plantation index & stocks. It could be a good time to take profit on your plantation portfolio.