MARKET DEVELOPMENT
Palm Oil Futures Test Resistance Levels
Palm Oil Futures Test Resistance Levels
22/08/2017 (Hindu Business Line) - Malaysian palm oil futures on Monday ended sharply higher on overnight soyoil strength. But gains were capped by weak export data from cargo surveyors.
CPO active month November futures moved as expected. As we have been maintaining, even though it looks like the short- to medium-term has turned bearish, the bigger picture still favours bullishness ahead. The big picture still indicates neutral tendencies and a chance of a revival in the bullish trend from critical support points. Potential targets are near 2,815-2,840 MYR/tonne now, with chances of further extending to 2,905, a crucial fibonacci retracement level eventually.
As expected, we saw prices testing 2,725 and closing above 2,700 in good volumes — an indication of strength going forward. Supports are now noticed at 2,665-70 and 2,635-40 in the short term. Only a direct fall below 2,620 could dent our bullish expectations and temporarily delay the upside expectations. Such a fall could once again see strong supports emerge in the 2,595-2,600 zone. Favoured view still expects prices to find supports and inch higher again in the coming sessions.
We will now reassess the wave counts, as prices have crossed 2,370-2,400 . A possible new impulse looks to have started again. One of our targets at 1,850 was met. The rally from there looks very impressive. As mentioned earlier, we expected prices to push higher towards 2,645 initially and then correct lower in a corrective pattern towards 2,425 or even lower to 2,225, and then subsequently rise towards a medium to long-term target at 3,600 , which could bring this current impulse to an end.
Our medium to long-term expectations are slowly materialising and the impulse wave is underway. But a short-term fall below 2,800 now has caused doubts on our overall bullish expectations. The present up move from 2,425 looks impulsive with potential targets around 2,795-2,800 while 2,585 holds.
RSI is in the neutral zone now, indicating that it is neither overbought nor oversold. Positive divergences in indicators hint at a bullish reversal ahead. The averages in MACD have gone above the zero line of the indicator hinting at a bullish reversal. Only a crossover again below the zero line could hint at bearishness again. Therefore, look for palm oil futures to test the resistance levels and rise higher.
Supports are at MYR, 2,665, 2,635 & 2,595 Resistances are at MYR 2,725, 2,810 & 2,845.
CPO active month November futures moved as expected. As we have been maintaining, even though it looks like the short- to medium-term has turned bearish, the bigger picture still favours bullishness ahead. The big picture still indicates neutral tendencies and a chance of a revival in the bullish trend from critical support points. Potential targets are near 2,815-2,840 MYR/tonne now, with chances of further extending to 2,905, a crucial fibonacci retracement level eventually.
As expected, we saw prices testing 2,725 and closing above 2,700 in good volumes — an indication of strength going forward. Supports are now noticed at 2,665-70 and 2,635-40 in the short term. Only a direct fall below 2,620 could dent our bullish expectations and temporarily delay the upside expectations. Such a fall could once again see strong supports emerge in the 2,595-2,600 zone. Favoured view still expects prices to find supports and inch higher again in the coming sessions.
We will now reassess the wave counts, as prices have crossed 2,370-2,400 . A possible new impulse looks to have started again. One of our targets at 1,850 was met. The rally from there looks very impressive. As mentioned earlier, we expected prices to push higher towards 2,645 initially and then correct lower in a corrective pattern towards 2,425 or even lower to 2,225, and then subsequently rise towards a medium to long-term target at 3,600 , which could bring this current impulse to an end.
Our medium to long-term expectations are slowly materialising and the impulse wave is underway. But a short-term fall below 2,800 now has caused doubts on our overall bullish expectations. The present up move from 2,425 looks impulsive with potential targets around 2,795-2,800 while 2,585 holds.
RSI is in the neutral zone now, indicating that it is neither overbought nor oversold. Positive divergences in indicators hint at a bullish reversal ahead. The averages in MACD have gone above the zero line of the indicator hinting at a bullish reversal. Only a crossover again below the zero line could hint at bearishness again. Therefore, look for palm oil futures to test the resistance levels and rise higher.
Supports are at MYR, 2,665, 2,635 & 2,595 Resistances are at MYR 2,725, 2,810 & 2,845.