On July 7, I have posted about a death cross for the Plantation index as well as CPO breaking below its medium-term uptrend line support at RM2450 (here). While the death cross persists for the Plantation index (see Chart 1), CPO has rebounded from RM2300 in early July to a recent high of RM2600 (see Chart 2). With this rebound, CPO has managed to claw back above its medium-term uptrend line (see Chart 3). The recovery in CPO could lead to a rebound in Plantation index & stocks, which could negate my earlier call to "reduce our shareholding of plantation stocks".


Chart 1: Plantation's daily chart as at July 26, 2010 (Source: Quickcharts)


Chart 2: CPO's daily chart as at July 23, 2010 (Source: ifs.marketcenter.com)


Chart 3: CPO's weekly chart as at July 16, 2010 (Source: ifs.marketcenter.com)