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Sunday, December 5, 2010

ZLBT's Derivatives Charts For Week Ahead 06/12/2010

FKLI 1500 Sustainable Despite Regular Profit Takings
FKLI Recommendations
CPO To Rise In Tandem With Crude & Soybean Oil
Crude palm oil (CPO) futures on the Bursa Malaysia Derivatives are expected to be on uptrend next week amid bullish sentiments, dealers said. A dealer said industry players and analysts were generally bullish about the market with improved sentiments. "Prices will remain fundamentally supportive amid concerns over supplies shortage. "Support levels will be at RM3,450 while there will be some resistance at RM3,600," he said.
Meanwhile, cargo surveyor Societe Generale de Surveillance said on Tuesday, exports of Malaysian palm oil products for November rose by 19.2 per cent to 1.569 million tonnes from 1.316 million tonnes shipped during October. CPO futures had rallied for five consecutive days last week over improved sentiments and supply concerns.
On a Friday-to-Friday basis, December 2010 contract rose RM200 to RM3,560 per tonne, January 2011 contract surged RM256 to RM3,562 per tonne, February 2011 climbed RM242 to RM3,516 per tonne, and March 2011 increased RM232 to RM3,475 per tonne. Volume for the week retreated to 97,458 lots from 99,615 lots previously, while the open position declined to 77,910 contracts on Friday from 79,077 contracts previously. As for the physical market, the CPO for December shipment was traded higher at RM3,560 per tonne on Friday versus the RM3,360 per tonne previously.

March soybean oil closed up 61-pts. at 53.89.
March soybean oil closed higher on Friday as it extends the rally off November's low. The high-range close sets the stage for a steady to higher opening on Monday. Stochastics and the RSI are bullish signaling that sideways to higher prices are possible near-term. If March extends the aforementioned rally, November's high crossing at 55.71 is the next upside target. Closes below the 10-day moving average crossing at 51.36 would confirm that a short-term top has been posted.
First resistance is today's high crossing at 54.03. Second resistance is November's high crossing at 55.71.
First support is the 20-day moving average crossing at 52.09. Second support is the 10-day moving average crossing at 51.36.


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