Plantation Theme + Stocks

1) Plantation Index - Moving up very strongly. Broke thru resistance of 3567 very strongly with long white candles on high volume on Thursday & Friday. Also in the upper band of the Bollinger Band & above the 5,10,15 & 20-day MAV. Daily & weekly RSI & MACD are positive. It should continue rising with short corrections in between. One reader said that Hedge Funds are involved in pushing up CPO prices & this Index. That may be true but that does not mean we shud avoid this sector. We shud benefit from this but keep an eye on technicals & take small profits along the way. However fundamentals are there with lower peanut & soya yield in India & USA respectively, higher demand from India, China & from biodiesel usage & also lower stocks of palm oil in M'sia & Indonesia. Rising oil prices will also mean more interest in biodiesel & higher CPO. Just like oil prices, lower supplies & higher demand equals higher prices. This play may still have some legs to go. Enjoy the ride & if you had bought some of my early picks, you'd be up very well. Some stock analyses follow.


2) Asiatic - Broke out of its recent resistance at 3.58 very strongly on high volume. Daily & weekly RSI & MACD are positive, its also above the 5,10,15 & 20-day MAV. Looks good to hit its next target of 3.92 & beyond that is its all time high of 5.15, but that is a pretty high target, possible, but we have to watch the signals. But for now its should still continue rising.


3) IJM Plantations - One of my early recommendations. Superb stock & Friday it shot through its recent & historical high of 1.62 on very high volume. Its above the 5,10,15 & 20-day MAV, its just above the upper Bollinger Band (still ok) & MACD just made a golden cross. RSI is positive. Overall a very good stock & still a BUY.


4) Kretam - I am reviewing for the first time. Just started its rise so its a laggard stock. The bollinger band has just started expanding & prices are within the upper band & rising. It has moved above the 5,10, 15 & 20 day MAV, RSI & MACD are positive & Volume is rising. The weekly signals are also positive. This laggard is showing signs of catching up with its bigger cousins. Initial resistance are at 0.62 & 0.70. Signals indicate a BUY.


5) Kulim is another recommendation that has done well. It is above the 5,10,15 & 20-day MAV & is also riding along the top end of the Bollinger band. The rise has been punctuated by intermittent corrections which is healthy. Daily RSI & MACD are still positive & despite the rise are not overbought, although the weekly RSI is very overbought. Historical high is 5.20 & its 50:50 that it may just reach that high. Rising CPO prices may take it there. Bec of the swift rise I am keeping an eagle eye on the candlesticks looking for a correction & also if it falls below the 5 & 10-day MAV I will consider a top, but for now all signals still do not show a correction.


6) Rimbunan Sawit - Another one of my early recommendations has performed admirably. It is currently above the 5,10,15 & 20-day MAV & within the rising channel. As a recent listing, we don't have enough data to plot & seek many signals like MACD, RSI etc, so the use of several MAVs is suitable. I will continue to hold this until it falls below the 10-day MAV, only then will it trigger my sell call.