Uptrend position since last mid-July 2016

• CPO price has been trending positively after bottoming out near the RM2,186 level in July 2016. There was a formation of higher high after CPO price surged above the RM2,800 level in October, extending the uptrend towards RM3,200.

• The MACD Indicator is currently hovering positively above zero, but the Stochastics oscillator is overbought. CPO price might rangebound between the RM3,000-RM3,200 levels in the near term, consolidating into a pennant formation.

• If CPO price could surpass the RM3,200 level, next resistance likely to be seen around the RM3,600 level.

• We recommend MKH to ride on the bullish CPO trend. Here are some of the comparable plantation stocks based on Bloomberg Industry Classification Standard with the outlook over the next 2-4 weeks period, accompanied by their short term supports and resistances.

Source: Hong Leong Investment Bank Research - 23 Jan 2017