Comments: Plantation Theme

As mentioned in this blog yesterday plantation counters were due for a correction & I had SELL recommendations on all of them. So if you had followed my advise you would have made some decent money & sold out by now. The Plantation index is also correcting with strong support at 3567 which will also be at the centre Bollinger Band. It may not hit that level but if it does & remains above it then we may see round 2 of the run.

Oil prices have also fallen & if CPO remains high, this makes Biodiesel unviable as an alternative fuel. So CPO prices may fall in the short term. H'ever the hurricane season is upon us & all it takes is one major hurricane to push oil prices up & with that CPO prices. For now avoid plantation counters until the correction is over, although it may just be a short correction. So keep a keen eye on this space.