On October 24, CPO finally launched into an upswing after it broke above the horizontal line at RM2250. Today, after ten weeks of steady rise, CPO has cracked above the psychological RM3000 mark. It is now testing the downtrend line, RR at RM3050. This downtrend line stretches back all the way to March 2008!! Can the rally break above this formidable downtrend line?
Chart 1: CPO's weekly chart as at 30 Dec 2019_3.00pm (Source: Investing.com)
Chart 2: CPO's monthly chart as at 30 Dec 2019_3.00pm (Source: Investing.com)
Kenanga has rightly called this rally in early November. The research analyst picked 3 stocks to ride the CPO rally. They are HSPLANT, TAANN and KLK. The huge rally in these stocks can be clearly seen below.
Chart 3: HSPLANT's daily chart as at 30 Dec 2019_3.00pm (Source: Malaysiastock.biz)
Chart 5; TAANN's daily chart as at 30 Dec 2019_3.00pm (Source: Malaysiastock.biz)
If CPO were to consolidate after testing the downtrend line at RM3050, the lofty prices of many of the plantation stocks will likely to retrace. I believe that some profit-taking now may be a good idea.
No comments:
Post a Comment