New Theme Play - Timber Stocks

The recent news about rising demand & prices for plywood & timber products led to a massive jump in prices of many of the stocks in this industry. Fundamentally, it looks like the industry is in for a good run for at least 6 - 12 months & with this stocks will generally rise. I pick a few here which are technically sound as well & use DocTS strategy to select investments.

Cymao - very bullish. All indicators positive - DMI, MACDH, MAV, BB & ADX is strong & rising. Initial resistance at 1.76 & the 2.28. There may be some minor correction after Friday's strong rise, but it should be well absorbed. Strong BUY.


Leweko - has had a good run already rising from 1.20 to 1.54 in the last 2 months. It has also risen above the resistance at 1.50. It was in a minor correction mode over the last few days but should start rising again now. All other signs are positive DMI, MACDH, MAV, BB and the ADX is also strong. BUY


Permaju - is another stock will all positive indicators - DMI & MACDH are +ve & rising. ADX is bullish & strong. Prices are in the upper BB channel & above all the MAV. All positive signs. But Permaju did not rise as strongly as Cymao or Priceworth on Friday & strong resistance at 0.50. If that can be breached then the bullish move will start. Watch with buy above 0.50.


Priceworth - all indicators are positive. DMI is +ve & ADX is strong - bullish momentum is strong. MACDH is rising, +ve sign. Price is in the upper BB channel, in fact it has shot above the upper line on Friday. Price is also above the 7, 14 & 30 day MAV and the short term MAV are above the longer term MAV giving further indication of bullishness. Price also rose above the 0.605 resistance on strong Volume but there is another resistance at 0.67. Pworth is also generally undervalued so further upside is expected. This is a good buy for the timber play. Some correction can be expected (though it may be well absorbed) after Friday's 10% rise but it should continue rising in a bullish run after the correction. BUY