From my analysis, identify production month is very important for Malaysia palm oil sector as indirectly will rise share price in plantation counters.
- DUTALND-WA (counter code:3948WA)
- DUTALND (counter code:3948)
- IOICORP (counter code:1961)
- KULIM (counter code:2003)
- KLK (counter code:2445)
Reason behind: when company produce less, the supply will be decreasing and rise up the palm oil price due to northeast monsoon period.
Share price will be down = SEPT-OCT
Reason behind: when company produce more, the supply will be increasing and fall down the palm oil price during the harvest month.
However, plantation sector will up in short period especially for those who interested to purchase shares in short-term/ contra as below chart:
My Charting analysis (short-term trading)
Indicator Bollinger bands shows: showed uptrend sign
Indicator STO slow shows: Still below 80 showed oversold timing
Indicator volume shows: more people to buy and willing to take any price as some of them is a contra player
Suggestion:
For those who interest to purchase shares then this is a time to enter in the market (buy) for short-term trader. However, precaution for long term investor as plantation cycle is at peak now will end of upcycle sometime in 2011.
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