FCPO Daily technical analysis:
The FCPO active month contract ended sharply higher and it was able to maintain its upward posture throughout the day as the market sentiment was boosted by positive palm oil export figure released by ITS.
Moreover, tight supply outlook for vegetable oil markets had pushed up the FCPO price rose to nearly 9.2% from the lowest level in just three days. At the close, the FCPO price was up 116 pts or 3.92% to 3,078.
From the daily chart, price gapped higher once it opened as it was buoyed by overnight CBOT soybean oil price soared more than 3%. As we can see in the chart, a long positive candle formed on Wednesday where it indicated that buyers were aggressive throughout the day. Trend remains positive and this was also confirmed by the MACD indicator. However, there are two downside gaps left uncovered at the moment. 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, 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 23rd Aug 2012:
1st support 3000
2nd support 2960-30
1st resistance 3130
2nd resistance 3170-3195
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