ASI will test new highs in 2018

For 10 straight weeks the ASI fell 332 points. But this week being the final week for 2017, we saw the index recording a gain of 50 points. That is huge given the lackluster behaviour due to the holiday mood. However 1 week of gains won't mean a thing if the activity is going to be erratic. Even if some may not agree the economic indicators have shown a better year compared to the previous 2 years. As such the market ended by closing at 6369.30 which was higher than the open of the year which was 6228.30. Although it was marginal yet it makes sense alongside the explanation above. Therefore I like to image 2017 as a YEAR OF RECOVERY for the CSE, and the New Year to be the BEGINNING OF GROWTH. My top side expectation for the Index is to test 7000 points DURING the Year with the bottom side being 6000 points. Therefore the behaviour will certainly be volatile within an upward trend.

Plantations - testing the 100sma.....who capitalized on the drop?

As we all saw the prices retraced a bit, in some instances dropped 5 to 10% and more. Only the bold and confident ceased the moment. Still it is not late. Collect and accumulate as the short to medium potential is very high on the plantations.

As it tested the 100 sma, there can be a retracement and a consolidation down to 955 points and hit higher to test 987 points. 

Seasons Greetings

My dear readers and friends,

May I take this opportunity to extend my warmest wishes and blessings this season. Enjoy the Holidays while sharing your Love and Joy with all you meet.

Season's Cheers From Me...........

Plantations - Blessing in disguise

Ok a lot of the players are in 2 minds as to what they should be doing with plantations stocks, after the news that the Russians are restricting the purchase of Agri Products including tea.

Thank God for Tea. It is a natural beverage, as such the Ceylon Tea can't be replaced just because you buy teas produced in India, Kenya, Vietnam or China, or even Russia, as they too produce tea. Just think if Russians are making tea why on earth they love Ceylon Tea. We as Sri Lankans have not tasted teas from Kenya or India as we consume our own and won't allow those teas coming to the shelves of our Stores at any rate. So we do not know the difference, but if you have had the luxury of tasting those teas you will know the value of Ceylon Tea, it is a Gift that has come to Sri Lanka.

Key players in the game of Tea are aware of what's going on, and they won't be disturbed. But they surely will keep a closer look at HOW THE HIGHER AUTHORITIES are handling the issue. IT IS TOTALLY UPTO THESE BIG WIGS TO HANDLE IT PRUDENTLY. The time duration of resolving will be based on the negotiations. It can be within days, weeks or perhaps months to come to a settlement.

Russians take the bulk of their teas in to the their lands before the 15th of November to sell before Christmas. Thereafter the Traders go on Christmas Holidays, and will be back only after the 15th of January. So the timing by the Russian Authorities have been safe, for their consumers as well as for our Shippers since the Bomb shell fell only during the holiday period. As far as Tea auctions here are concerned, there wont be a sale in the last week of the year ie. next week. That too is not exciting and panicking the Shippers.

Hopefully the Team that has been given the responsibility of resolving would finish it before the Shippers get excited in the Month of January.

During this period the Prices of Plantations will fluctuate, but once all is done and life gets back to normal, the Prices will shoot in stocks and Auctions as well.

That is why this is a blessing in disguise. Capitalize on it, as the time is short. 

LDEV - Told not to trade. Time to collect!!!

LDEV has now made a low of 6/- after it went XR. Thereby forming a huge gap between 10.40 and 7.30. It is now worth collecting with a stop at 6/-. The upward momentum could test 7/50 to 8/- in the short term, which could extend to test 9/- with a strong consolidation.

Plantations - Interesting momentum build up time to buy

Today's close on the Plantations was very interesting. The positive levels of activity could take the momentum forward to higher levels, but the behaviour of the price levels will have to be watched very carefully. The time to buy plantations has come.......

ASI Weekly Chart - No signs of a recovery. However watch the coming week

ASI is continuing on it's down trend on the weekly chart. This suggest that there is no major reversal at this time. However we must watch the impact of the coming week to understand the way forward.
Support at present is between 6240 and 6375.
One good thing is that there are many counters to collect and accumulate at attractive valuations.

JKH - Trades in a tight channel

A narrow channel between 153.60 to 154.70  helping the counter to be supported. The present resistance is at the swing high of 156, with the support is at the present swing low of 149. Only relief is the levels of volume that are being accumulated. Collect only if you would average down,else stay away.

Plantations - Can it hold above 900?

Plantations have headed back to the support channel. Need to stay above 900 points. 18.2 points away at present. No signs to be interested in the counters as yet.