The near-term technical outlook of the palm oil futures turned bearish when the 50-day MAV line that has been supporting the massive rally since the low in October ’08 was violated on June 12, ’09.
Since then, the market has been consistently pressured by the downtrend line. We maintain our bearish bias view towards palm oil price’s outlook until the downtrend line is violated. The futures market is approaching a key support at the RM2150/tonne level, from which a breakdown would likely see the price falling quickly to the 200-day MAV line, which is situated at the RM2018/tonne level. To the upside, look for an immediate resistance at the RM2359/tonne level, followed by the RM2349/tonne level.
ZL's Friday 03 Jul 09 positions FCPO Sept BUY 2109 & 2121 averaging 2115. Target 1 >>> 2225. Target 2 >>> 2300. Trailing Stop 2138 >>> Cutloss 2100 TQVM
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