Friday, November 01, 2013

CPO broke above RM2500

As noted in an earlier post, CPO has broken above its downtrend line. Today, it broke above the RM2500 horizontal line. This also created a higher 'high' which together with an earlier higher 'low' satisfied the requirement for the start of an intermediate uptrend. CPO's next resistance is at RM2700.


Chart: CPO's weekly chart as at Nov 1, 2013_3.30pm (Source: ifs.marketcenter)
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7 comments:

  1. JYFriday, November 01, 2013 4:55:00 PM

    I think I see a breakout of inverted head and shoulder pattern on your chart.

    ReplyDelete
  2. Alex LuMonday, November 04, 2013 9:10:00 AM

    Hi JY

    You are right. It is a reversal pattern known as the inverted head and shoulder. Since CPO has surpassed the neckline at RM2500, this means that CPO's downtrend line has reversed into an uptrend.

    Thank you for highlighting. An extra pair of eyes helps.

    ReplyDelete
  3. Forex, commodityMonday, November 04, 2013 9:13:00 AM

    hi alex, a newly uplifted PN17 company, Destini is agressively expanding yje business.
    Just announced of proposed buying the O&G business from samudra.
    How do u see of this proposed deal where Samudra will ended up with RM0.46 cash company with no core business after disposal while Destini venture into this high risk new business?

    ReplyDelete
  4. Forex, commodityMonday, November 04, 2013 9:18:00 AM

    hi alex, how do u see the proposed deal of Destini buy into Samudra O&G business?
    Samudra will ended with RM0.46 cash a share without core business after disposal, while Destini agressively expanding into this business at 13 P/E price.
    thanks

    ReplyDelete
  5. laiMonday, November 04, 2013 9:30:00 AM

    Hi Alex,

    Insas performing strongly as i'lm typing this. Would you like to comment on its potential?

    Much thanks!

    ReplyDelete
  6. Alex LuWednesday, November 06, 2013 2:15:00 PM

    Hi KLSE value stocks

    On Destini acquiring Samudra's O&G business, I can only say that I doubt Destini's management will do a better job than the Samudra's management in taking care of the business. The Samudra's management team is fairly experienced.

    For Samudra, I doubt the share price will go any much higher than the current price at RM0.40. Why buy into a company at RM0.40 to get cash of RM0.46 when there are better stocks to get into?!

    For Destini, it is holding onto the horizontal line at RM0.36. Its immediate resistance is at RM0.42-0.44. There seems to be something cooking in Destini from Sep 2012 to Jul 2013, and the upside move in Aug was thought of as the beginning of an upleg. Unfortunately, that rally terminated after 1 month and the downward channel formed over the past 2 months put everything back to square one. It is pretty much in a wait-and-see situation.

    ReplyDelete
  7. Alex LuWednesday, November 06, 2013 2:18:00 PM

    Hi Lai

    Insas has rallied sharply before- in April 2002 and February 2007. If this is a repeat of that end-game rally, then it may reach for RM1.00-1.20.

    If it is something more than a play- like Tony Tiah buying more of TA Ebterprise- then there is hope that it be more rewarding to get into Insas.

    ReplyDelete