The multi-year monthly chart seems to suggest that CPO has bottomed a few weeks ago but we probably need to see a monthly higher high to confirm this. However, the following weekly chart is indicating a potential reversed H&S formation with a weekly price already closing above its recent downtrend line…

CPO (monthly)

  • Note that the H&S breakdown carried the prices all the way to about MYR 2,000 which was fairly close to the theoritical H&S target slightly below it
  • Assuming we see a montly higher high close in coming weeks, the H&S bearish pattern would have completed by then
  • The next question is: how much longer would the prices need to recover afterward…

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CPO (weekly)

  • Price action since Sept.12 seems to be carving a “reversed” H&S formation
  • In addition, the weekly prices just managed to close above its downtrend line since March 2012
  • Indeed, it looks like we may see some exciting (positive) price action in coming weeks…

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