Watchlist: Plantation Stocks - IJM Plant & Kulim

These are two interesting & lower priced plantation stocks that may interest traders.

1) IJM Plantations has been trending up since March & is close to its peak of 1.62. Daily & weekly MACD have made a golden cross & daily RSI is only at 62 & rising. Friday's volume is also the highest in 2 months. It is also trending above the 10, 21, 30 & 50-day Moving Averages. Looks like a good stock to buy. If the Plantation Index IHS comes true then this should also run up quite nicely. Stop loss is at 1.39.


2) Kulim has formed a nice uptrend channel since 2001. However everytime it hits the top channel line there is a major correction. It just hit that line again this Friday as seen in the weekly chart attached. Also while prices rose strongly this week they were NOT accompanied by high volume. The daily volume on Friday when prices gapped up & hit the peak were actually very low. Higher prices but lower volumes is a divergence of some concern.

Also Weekly RSI at 94 is oversold & MACD is positive. Daily RSI is 66 & just turned up, daily MACD is positive. Resistances are at 3.85, 4.24 & the all time peak of 5.20.

However the bullish momentum in plantation counters should just push Kulim above the channel at least in the short term towards 4.24. Whether it remains there is another matter so buyers have to keep an eye on this if they buy. But being one of the cheaper plantation stocks no doubt it will see a lot of interest next week.