The FCPO active month contract ended lower on Wednesday due to stronger ringgit triggered selling in FCPO market. Market had ignored a bullish report released by MPOB, ITS and SGS. At the close, the FCPO price was down 25 pts or -1.04% to 2,370.
Based on the daily chart, another long negative candle has been formed on Wednesday where it indicated that selling pressure weighed on the FCPO price.
During the second trading session, the FCPO price rose to 2,416 after MPOB released a bullish report. However, the price was unable to break above the previous high level which had triggered technical selling again. Throughout the day, the price fell to as low as 2,370 where the gap left on Monday had covered.
Referring to the MACD histogram, it is building up in the negative zone. As always, intraday support and resistance levels will be eyed.
Technical indicators:
MACD= Negative, ADX= Negative,
Intraday technical support & resistance for 11/04/13
1st support 2,340; 2nd support 2,300
1st resistance 2,390; 2nd resistance 2,430
Recommendations
SELL INTO STRENGTH
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