FCPO closed : 2905, changed : -87 points, volume : higher.
Bollinger band reading : downside biased with possible pullback correction.
MACD Histrogram : falling lower, seller taking exposure.
Support : 2900, 2850, 2800, 2770 level.
Resistance : 2920, 2950, 2970, 3020 level.
Comment :
FCPO closed recorded huge losses with increasing volume participation. Last Friday soy oil ended substantially lower again and currently trading weaker while crude oil moving downward recording loss.
Getting worst global economy condition resulted broad commodities to trade lower as concern on slowing down demand plus rising inventories. Export data released today shows sign of improvement but still lower than previous month for the same period of time. Lower Indonesia export tax also added to the downward price movement.
Global oil conference which started last Friday in India, Mumbai sees industry expert Dorab Mistry statement expecting crude palm oil may tumble to as low as 2,800 ringgit ($880) a metric ton in the next five to eight weeks, the lowest level in almost a year, as output jumps in Malaysia and Indonesia.
Daily chart formed a down bar candle with long lower shadow closed below lower Bollinger band after market opened lower, move little upwards and fell lower followed by second session opened gap down, dip lower and recover upward to closed off the low of the day.
Chart study turned to suggesting a downside biased market development with possible pullback correction testing 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 quick cut loss and profit target.
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