It has been a while since I have identified any stocks worth buying as I am bearish the market and did not participate in the last runup since July (except to sell my shares). However, due to the recent weakness in commodities and oil, some of the plantation stocks have been retracing. When retracement reaches my accumulation zone for some of these stocks, I will be ready to pounce. But not yet, because the charts for oil are not still looking good. If the bullishness in the US markets continue into next week, it might get whacked some more and cause plantations to weaken further. Historically, some of the plantation counters I have been looking at tend to have down or sideways movement lasting 6 - 8 weeks, and we are in week 2-3 at the moment. So I’d like to look for some more weakness as they work of their overbought conditions and start buying perhaps closer to the next earnings season.
Here’s a graph showing you what I mean:
I would love to buy this baby in the 3.0 - 3.2 range even though it is showing plenty of support at the moment.
Here’s another one:
8.0 is my ideal buy point.
Happy Trading!
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