FCPO closed : 2920, changed : -74 points, volume : lower.
Bollinger band reading : downside biased with possible pullback correction.
MACD Histrogram : falling, seller taking position.
Support : 2930, 2900, 2850, 2800 level.
Resistance : 2970, 3020, 3050, 3070 level.
Comment :
FCPO closed recorded loss with lower volume transacted while overnight soy oil closed severely lower and currently continue to trade weaker.
Weak global sentiment especially U.S. and European economy triggered broad commodities to have massive sell down including crude oil (except gold) pressure palm oil price to trade lower. On the other hand, market awaits tomorrow export and official MPOB Jul 2011 data with anticipation of production to peak in July 2011.
Daily chart formed a down doji bar candle with long upper shadow positioned below lower Bollinger band level after market opened gap down, move side way, recover upwards closing the down gap and slide lower followed by last minute sell down to closed near the low of the day.
Technical reading turned to suggesting a downside biased market development with possible upward pullback correction support and resistance level.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant or strength with moderate cut loss and profit target.
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