Palm oil settled higher yesterday on encouraging June 1 - 15 days export data and expectation for export to further improve towards Ramadan festive month. Nevertheless, gains were capped by lingering concerns over escalating production and inventories coupled with uncertainties in external markets. Overnight crude oil slumped to settle at the lowest since February as European debt crisis and worse than expected manufacturing data in US outweighed falling crude stocks to pressure prices lower. Soy oil however managed to end higher in tandem with soybeans with investors shifting focus back to uncertainties in soy planting session. Expect futures to trade under pressure today along with weakness in external markets while investors likely to stay sideline in the absence of fresh supportive factors.
Futures continued the rebound from its one month low and traded higher to form the second higher high, higher low long white candle. Diverging MACD still persist and likely to keep sellers safeguard the resistance of 3335. Technically, look for futures to trade range bound with support and resistance pegged at 3235 and 3335 respectively.
ZLBT Trade Strategy
Aggressive trade may short with stop on close above 3360
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