Source: Plantation stocks marking time...
CPO has broken above its intermediate downtrend line, RR at RM2350 in mid-August. After a rally to RM2500, CPO eased back to test the overcome downtrend line at RM2250 in September. The indicators are slowly climbing up and if CPO can surpassed its August high of RM2500, CPO may enter into a medium term uptrend.
Chart 1: CPO's weekly chart as at Oct 17, 2013 (Source: ifs.marketcenter)
FBMPalmOil index, which has been moving sideway for the past 9 months, could enter into an uptrend once CPO prices trend higher. FBMPalmOil index comprises the constituents of the FTSE Bursa Malaysia EMAS Index that derive substantial revenue from palm oil activities that meet the stated eligibility requirements.
Chart 2: FBMPalmOil's weekly chart as at Oct 18, 2013_11.00am (Source: Quickcharts)
I do not have any plantation stock in mind though I am a bit surprised by KMLoong's price performance as well as the small drop in its bottom-line (as compared to huge drop in other plantation companies). If it can surpass its recent high of RM2.50, KMLoong may continue with its prior uptrend.
Chart 3: KMLoong's weekly chart as at Oct 18, 2013_2.45pm (Source: Quickcharts)
Based on the above, I believe that you should pay close attention to plantation stocks as I feel that this sector could benefit from a rally in CPO prices if the CPO can breach the RM2500 level.
Note:
In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, FBMPalmOil index or plantation stocks.
Chart 1: CPO's weekly chart as at Oct 17, 2013 (Source: ifs.marketcenter)
FBMPalmOil index, which has been moving sideway for the past 9 months, could enter into an uptrend once CPO prices trend higher. FBMPalmOil index comprises the constituents of the FTSE Bursa Malaysia EMAS Index that derive substantial revenue from palm oil activities that meet the stated eligibility requirements.
Chart 2: FBMPalmOil's weekly chart as at Oct 18, 2013_11.00am (Source: Quickcharts)
I do not have any plantation stock in mind though I am a bit surprised by KMLoong's price performance as well as the small drop in its bottom-line (as compared to huge drop in other plantation companies). If it can surpass its recent high of RM2.50, KMLoong may continue with its prior uptrend.
Chart 3: KMLoong's weekly chart as at Oct 18, 2013_2.45pm (Source: Quickcharts)
Based on the above, I believe that you should pay close attention to plantation stocks as I feel that this sector could benefit from a rally in CPO prices if the CPO can breach the RM2500 level.
Note:
In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, FBMPalmOil index or plantation stocks.
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