1. CPO prices tumbled RM86 or 2.8% to RM2,998 as of 5.45pm. If critical support above RM3,000 is broken today, it will be negative for plantation stocks tomorrow.
2. Historically, KL Plantation Index tracks CPO prices closely with correlation of > 90%.
3. Based on technical RSI value, here's some of the OVERBOUGHT plantation stocks that are most vulnerable to possible selloff tomorrow:
a) Sarawak Oil Plantation - RSI 77.7
b) Tradewinds Plantation - RSI 75.3
c) BLD Plantation - RSI 72.4
This blog is related to observations regarding stocks traded in Malaysia. Disclaimer: The company analysis that appear in this blog is merely facts gathered from different sources and the author's personal view. It is not a buy or sell recommendation. The author do not guarantee the accuracy of the facts being presented. Please consult your investment advisors before acting on any information provided by the analysis above.
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