The FCPO active month contract tacked in 0.68% continuing its reversal after a double bottom had been formed. The market getting some boost on optimism about export demand in the second half of August and estate worker go on Raya Holidays which may drawn down in palm oil inventory. At the close, the FCPO price was up 20 pts to 2,962.
From the daily chart, another positive candle formed on Friday where it indicated that persistence buying interest remains supported the FCPO price. Trend remains positive and this was also confirmed by the MACD indicator. However, the downside gap left uncovered at the moment. Since it successfully formed up a double bottom pattern, the next step is to keep an eye whether it is able to form up a ‘W’ shape in the long term trend.
Referring to the MACD Histogram, it successfully builds up in the positive zone. Meanwhile, the MACD line is crossing above the signal line where the bullish sentiment is building up in the medium term. As always, intraday support and resistance levels will be eyed.
Technical indicators:
MACD= Positive
ADX= Positive
Intraday technical support & resistance for 22nd Aug 2012:
1st support 2950
2nd support 2900-2863
1st resistance 3035-65
2nd resistance 3100
HAPPY TRENDING
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