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Thursday, September 13, 2012

FCPO Daily Chart Technical Outlook 13 Sept 2012

FCPO Daily Technical Analysis, Commentaries

The FCPO active month contract ended slightly higher on Wednesday as electronic soybean oil prices traded strongly up during the trading session which boosted the local market sentiment. At the close, the FCPO price was up 11 pts or 0.38% to 2,930.

Based on the daily chart, a positive candle with long lower wick formed on Wednesday where it indicated that continued buying interest buoyed the FCPO price. The price rebounded after it had tested for the third time the psychological level of 2,900 but it managed to close above that level when market close despite it broke below that level during the trading session. Since it is able to close above the psychological level of 2,900, there is a high possibility it may want to cover the upper gap. So the upside resistance level, we pegged at 2978-2,990 levels. Meanwhile, the downside first support we set it at 2,900 then follow by 2,874.

Referring to the MACD Histogram, it is building up in the negative zone. Meanwhile, the MACD line crosses below the signal line where the bearish sentiment will be building up in the near term. We should monitor closely the change in the MACD line. As always, intraday support and resistance levels will be eyed.
Technical indicators:
MACD= Negative, ADX= Negative

Intraday technical support & resistance for 13th Sept 2012:

1st support 2900-74; 2nd support 2838
1st resistance 2970-90; 2nd resistance 3030

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