Plantations are up..... but may not break the new highs soon

As the plantation stocks recovered it is important to remind ourselves that unless the present highs are broken the up move will not sustain. As such whoever wants to trade need to understand the risk of getting caught to a rally which is false. The index on Plantations saw the price line taking support at the upper end of the yellow channel at 944 today. We might see it moving up to test 995-1000 points in the next few days,but may not break above that. A reversal from there onwards will take it down to the support region once again. If my expectation of a trend failure is wrong and the index move further, then 1035/1040 is what to expect.

If one would want to indulge in short term trading, then the stop loss is necessary below the present low.