Palm oil gained 0.66% percent last Friday, as Asian investors were anticipating better data from Friday evening’s US nonfarm payroll report. Adverse weather threatening regional plantation harvest had also helped lifting the prices. Further upside potential will depend on tomorrow’s 1-10th January export figures and MPOB’s fundamental data.
NYMEX crude oil was down 0.3 percent as stronger dollar overshadowed better US job growth. US soyoil tumbled 1.6 percent on technical selling and bearish uncertainty of crop weather in South America. Expect futures to trade range bound with upward bias, as traders may start their buying spree before the expected decline in palm inventory figures from MPOB tomorrow.
Technicals
Futures traded up 21 points and settled at 3211 with a long white candle. The piercing line candle pattern, reflecting the white candle positioned lower than a long black, indicates possible bullish reversal trend. With divergence in MACD deemed firm, bullish investors may be convinced that northward journey will be pursued. As such, support and resistance to be pegged at 3150 and 3240 respectively.
Strategy
Aggressive trade may long with stop on close below 3175.
HAPPY TRADING
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