FCPO closed : 3051, changed : -50 points, volume : higher.
Bollinger band reading : side way range bound.
MACD Histrogram : resumed weakening, buyer reducing position.
Support : 3050, 3020, 2970, 2930 level.
Resistance : 3070, 3100, 3150, 3200 level.
Comment :
FCPO closed lower with higher volume changed hand while overnight soy oil closed recorded huge losses and currently continue to trade weaker.
Weakening global economy outlook after world markets major sell down lead broad commodities to trade severely lower including soy oil and crude oil.
News wise, Reuters reported that Indonesia palm oil associate reported crude palm oil export up 10% for the first half of this year after strong demand from China and India while industry forum estimate higher production and export and softer crude palm oil prices. Reuters survey reported a higher export, lower stock and output estimates.
Daily chart formed an up bar candle with little upper shadow positioned below lower Bollinger band level after market opened gap down and climb upward gradually through out the day to closed near the high of the day.
Technical chart reading remained suggesting a side way range bound market development testing support and resistance level with MACD indicator almost having a negative cross down.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.
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