Your PLC may be able to handle this but I'm concerned about the encoder. Insustrial encoders can better deal with the enviroment, vibration, shock, cutting oil dirt, electrical noise etc..
Therotically it can be done, but there are pit-falls, and reliability, and setup for different jobs may become a problem. If you would be willing to spend a few extra bucks you will get much better results.
Now to answer you question:
CNT 45 is a duel Pulse up/down counter that can be used with the encoder to track position in either direction. Max cout = 9999
FUN 100-146, or FUN 200-246 can be used a presets to create limits, or set the position at which you want to change speed, and or stop reverse etc. There are a limited number of presets available, and you will need to use a programmer to change them if necessary.
So the answer is: based on the low pulse rate "technically" yes you can do this if you choose to.
Sit down and draw a line on a paper, and mark the line with the event points, (1 start, 2 slow, 3 fast, 4 stop, 5 reverse etc) and encoder values at each point. Use this graph to create a flow chart, than make the code. Draw a graphical picture of your process before you do anything else.
Good Luck,
Mike.
P.S. hesham, posted while I was writing this, He brings up another good point regarding the encoder. Dont get so cheap that you risk serious damage to your equipment, or waste hours of time going nowhere.
Buy a real encoder here .