This year Mabel has invested in 11 sectors involving 13 Princes (YTL Power was relieved from duty when MACC started courting them due to past Bestari Project). From the 11 sector, Construction, Property and Financial Services are sitting on the Podium with Foreign Fund exiting our market. The real dark horse will be plantation. Once it break the Plantation Resistance at 7566, it will be a Bull Run like what happen in 2021, Crude Palm Oil (CPO) prices in Malaysia hit above RM 5,000 per metric tonne.
There is still a hidden treasure in small cap which lagging the large Cap in KLCI. YTD is only up by 4.2% compare to KLCI Large Cap of 10.7%.
Based on this analysis, Mabel will expand her plantation to include small cap plantation, Rimbunan Sawit Berhad (RSAWIT). Rimbunan Sawit Berhad (RSAWIT) owns approximately 69,909 hectares of plantation land in Miri, Kuching, and Sibu, Sarawak. She will join the Big Cap sisters Simone, Klara, Iona and Una.
If Simone, Klara, Iona and Una is for Sime Darby Plantation, KLK Plantation, IOI Plantation and United Plantation, Raya will be purrfect name for Rsawit as it has a nice ring to it and reflects the Malaysian heritage. Plus, it symbolizes celebration and prosperity, which aligns well with the goals of a plantation company.
The FCPO has now breached previous resistance at MYR4,900, suggesting a potential continuation of its bullish trend. It has also breaches the Plantation Resistance at 7566, trading at 7600 points. However, with the RSI exceeding 80 for the first time this year, we anticipate a period of profit-taking ahead. This pullback may find support around the 38.2% Fibonacci Retracement level, near MYR4,525, before resuming an upward trajectory to break RM 5,000 level.
Most KLCI components is RED, having period except for Plantation as the FCPO has rebounded, but this bullish outlook will need to be validated by another green candle. For now, any pullback is expected to hold above the 23.6% Fibonacci Retracement level. The tussle between the bulls and the bears will intensify until a clearer direction is formed.
In essence, the market is currently in a positive trend, but this needs further confirmation. The 23.6% Fibonacci level is a critical point to watch, and the ongoing struggle between buyers and sellers will determine the market's future direction
The 23.6% Fibonacci level is a key retracement level used in technical analysis to identify potential support and resistance levels in a market trend. It is derived from the Fibonacci sequence, a series of numbers where each number is the sum of the two preceding ones. The 23.6% level is calculated by taking 23.6% of the distance between a significant high and low point in a price movement.
For example, if the price of an asset rises from RM 3745 to RM 4992, the 23.6% retracement level would be calculated as follows:
So, the 23.6% Fibonacci retracement level for FCPO with a high of RM 4992 and a low of RM 3745 is approximately RM 4697.71. This level is used by traders to identify potential areas where the price might find support during a pullback in an uptrend or resistance during a bounce in a downtrend.
Only RM 8 to breach RM 5000. With RM depreciating against USD, looks like the weather is on our side….
Indeed shawn...the FPCO has already breached RM 5000. With RM depreciating against USD, looks like the weather is on our side. The FCPO swung past the MYR5,000 level for the first time in 2024, extending its bullish momentum from the Sep 2024 low.
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Future FCPO has now formed a small-bodied candle at RM 5,084 following an extended bullish run, which we believe could signal the start of a new base-building phase. We expect the consolidation to be supported at the 38.2% Fibonacci Retracement level. A break below this level, however, would indicate the potential for an early bearish reversal.
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NonameAS
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Posted by NonameAS > 1 month ago | Report Abuse
Take profit first. Come back again. Cheers