Plantation Stocks - Next Bull Run & IHS in Index?

Interest is building up in plantation stocks with the run up in crude palm oil prices. On Friday 21 July plantation stocks were the market leaders.

Interestingly there appears to be a very bullish Inverted Head & Shoulders pattern forming in the KL Plantations Index (PI) which is at a level last seen in Sept 1994, the next high being the all time high of 5 Jan 1994 (the super bull run, when CI peaked at 1332). The PI closed right on the neckline of the IHS at 3406, and close to the Sept high of 3443. It looks like the bullish momentum is there & no doubt the newspapers this weekend will spotlight palm oil & thus bring in the hordes of punters buying plantation stocks next week.

If it breaks out on high volume the IHS measurement target is 3834, close to the all time high. All that we need is a high volume breakout. But remember, in 50% of IHS breakout, prices will pull back to the neckline before resuming the uptrend so watch out for possible selling to emerge after breakout to shake out all the punters before it rises to the all time high.