NO CLEAR DIRECTIONSTo some CPO is on a downtrend but TA being subjective, CPO looks like consolidation to ZL after a run-up from 06 July. It seems to display some minor support / bargain hunting as prices drift lower to the 2500 Support level clinging to the 30 MA for immediate support.
A 10 & 30 MA Golden Cross will be a significant BUY SIGNAL.
The Bollinger Bands (which is not shown due to congestion) in daily chart are NOT expanding even with prices below Mid BB. This is the first sign that the bears are not in total control and optimism remains until the BB starts expanding noticeably.
In the 60 mins chart, the Stoch rebounded off the oversold 20 mark into the neutral 50 whilst the MACD also showed some hook-up. CPO benchmark Nov gain RM16 today with prices stopping at the Mid BB. No Bollinger Bands expansion seen due to insufficient buying support. The overnite Soybean Oil prices will be decisive for CPO prices to sustain it's position above Mid BB coming session.
Technically prices are slightly stronger resistance wise than last few sessions with bears totally dominant. Hopefully the bulls can regroup and offer mre resisrance from here.
FCPO Recommendation
Until CPO prices is noticeably well supported above the 30 MA, ZLBT advice caution for LONGS / BUYERS.
However a BUY ON DIP around 2500 level with 2480 Stoploss is recommended
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