Chart 1, CPO chart from 4/5/2009 to 15/10/2009.
As mentioned last week, the CPO rebounded at the 2000 point level, breaking above the 14, 21, 31 EMA, as indicated by A. This shows that the CPO has broken away from the previous downtrend, and might be forming an uptrend. If the CPO should remain above the 14, 21, 31 EMA, it is likely to form an uptrend and it would have a positive effect to plantation counters.
Case Studies on Plantation Counters:
Chart 2, Dutalnd – 3948，chart from 20/07/2009 to 15/10/2009.
As shown on the chart 2, price of Dutalnd formed a Descending Triangle with the L2 (RM 0.55) being the support and L1 being the dynamic resistance. As indicated by A, price of Dutalnd broke above the L1 dynamic resistance, suggesting that it is breaking away from its bearish biased consolidation, and might be forming an uptrend. If one should buy at a break out, the Bollinger Middle Band shall serve as the dynamic support as well as the trailing stop reference. Resistances for Dutalnd are found at RM 0.62 followed by RM 0.67.
If price should break below the Bollinger Middle Band, it would be a signal suggesting a weakening movement, and for investors who are holding Dutalnd shares, a crucial support is at L2 (RM0.55) level. Technically speaking, if price should break below RM0.55 level, it would be a signal to cut loss.
Latest Financial Summary of 30/6/2009：
| PER* | 5.03 times | Dividend Yield | 0 % |
| Dividend | Dividend Yield | Net Profit Ratio | |
| 30/06/2009 | 0sen | 0% | 66.52% |
| 30/06/2008 | 0sen | 0% | 21.57% |
| 30/06/2007 | 0sen | 0% | 329.71% |
| 30/06/2006 | 0sen | 0% | -63.61% |
| 30/06/2005 | 0sen | 0% | -59.96% |
Table 1: Financial Summary of Dutalnd.
Chart 3, GENP – 2291, chart from 23/06/2009 to 15/10/2009.
As shown on chart 3, GENP is still forming an uptrend, and all these while been supported by the 14, 21, 31 EMA. On the 23rdof September, price of GENP was resisted at RM 6.25-RM6.28 level, and price retreated as a technical correction. However, it was still supported by the 14, 21, 31 EMA as well as RM 5.93 – RM 5.95 level. As indicated by A, after being supported by the 14, 21, 31 EMA, price of GENP rebounded, and resumed its uptrend.
As price rebounded from the 14, 21, 31 EMA, investors can apply the 14, 21, 31 EMA as the trailing stop reference. If price of GENP should remains supported by the 14, 21, 31 EMA, the uptrend is likely to continue and the first resistance is at RM 6.28 level.
If price should break below the 14, 21, 31 EMA, it would be a signal suggesting that price is having a technical correction, or a consolidation. Therefore, the next support level to watch out for is at RM 5.95 level. In other words, if price should also rebound from the RM 5.95 level, it is still alright to hold on to your positions, but however, if price should break below the RM 5.95 level, it would be a signal to cut loss, as price might form a downtrend. If investors find it hard to cut loss immediately, it is a good idea to reduce position by 1/3 at a time.
Latest Financial Summary of 30/6/2009：
| PER* | 19.37times | Dividend Yield | 1.63% |
| Dividend | Dividend Yield | Net Profit Ratio | |
| 31/12/2008 | 10sen | 2.44% | 36.03% |
| 31/12/2007 | 14sen | 1.60% | 38.96% |
| 31/12/2006 | 7sen | 1.51% | 29.68% |
| 31/12/2005 | 6.25sen | 2.92% | 32.87% |
| 31/12/2004 | 5.50sen | 3.02% | 33.92% |
Table 2: GENP Financial Summary.
Conclusion:
Despite GENP and Dutalnd are not the main players of Plantation counters, the rebound of CPO at 2000 do have a positive effect on their price movement. Nevertheless, it is important that investors to monitor stocks in similar sector, and capture the best investment timing with a proper trading plan.
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