Shown in the figure below, we noticed the strong trend for the FCPO since the range of RM2795-2800 to above RM3000, closing at RM3080 last Friday and we believe this trend may still sustain over the near term, targeting RM3150 and longer term target will be set around the RM3400 level. With the firm trend in FCPO, traders would have noticed the buying support for plantation has grown in the past few trading days on Bursa Exchange.
Source: Bloomberg
With the idea that higher FCPO price would translate into strong earnings for plantation counters moving forward, the plantation index (figure below) has breakout above the short term downward trendline and could be trading towards 7393 level, with the support located around 6978.
Plantation index – Breakout above downward trendline
Hence, we have handpicked several counters under the plantation sector for M+ Wiz to trigger us the alert for entry since last week. Some of the stocks mentioned in our M+ Wiz include KMLOONG, SOP, HARNLEN, RSAWIT, FGV, IJMPLNT, INNO and CBIP (plantation related).
For today, it has been decent as buying interest on plantation stocks remains sturdy and FCPO trades around RM3080-3100 range at the start of the futures market. With that, we believe that will lift the broad plantation stocks at least for the rest of the week.
M+ Wiz alerts for this morning
INNO – Triggered around RM1.13, hitting the intra-day high at RM1.19.
IJMPLNT – Triggered around RM1.90, hitting the intra-day high at RM1.92.
Source: M+ Wiz
CEPAT – Triggered around RM0.68, hitting the intra-day high at RM0.70.
Source: M+ Wiz
M+ Wiz is a system to avoid trading based on emotions, assisting traders to perform better in the market. We reckon traders to put a stop limit and protect your capital just in case the market turns against us.
Stay tuned for the M+ Wiz highlights every Monday at 12:30pm, we will be on our FB live and share our thoughts on the market for that session. If you like our videos, remember to click “Like” and “Share” to your friends.
We would like to highlight that these examples above are not a suggestion for a BUY or a SELL recommendation and it is more for a case study reference material for the future.
Creating wealth using M+ Wiz!
