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Monday, August 27, 2012

FCPO : Daily Chart & Market Commentaries 27 Aug 2012

FCPO Daily Technical Analysis 27 Aug 2012

The FCPO active month contract ended slightly higher on Friday as it was buoyed by electronic soybean oil prices traded strongly up during the Asian trading time coupled with expectations on positive export figures which are to be released on Saturday (25-08-2012) and Monday (27-08-2012). At the close, the FCPO price was up 8 pts or 0.26% to 3,069.
From the daily chart, price rose to as high as 3,097 during the trading session and it nearly hit the ceiling of psychological level of 3,100. This is the second time the price challenged the psychological level of 3,100 which the price later had been pressured to as low as 3,066. Since it failed to break above the psychological, it ended up making a negative candle. Nevertheless, if the price is able to break and closes above the mentioned level, it will be necessary for further gains. On the other hand, there are two downside gaps left uncovered at the moment. However, trend is still positive and this was also confirmed by the MACD indicator. Since it had 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, a rounding top seems to be forming up soon. 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 27th Aug 2012:

1st support 3050
2nd support 2960-30
1st resistance 3100-35
2nd resistance 3195


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