Technicals
The FCPO active month contract ended slightly higher due to good export reports released on Wednesday. ITS and SGS released the figures showed that Malaysia palm oil export up 4% and 5% respectively.
Futures settled at 2236, up 21 points. Prices were caught in a tight range and hovered between losses and gains but remained steady above 2200 level. The formation of a small bodied white candle with longer upper shadow indicates buyers outweighed sellers for most part of the day and managed to lift prices from its day low. Higher high and higher low formed could add to confirmation of a bullish reversal despite a mild profit taking after the strong rebound yesterday. This could imply improved sentiment and MACD is seen approaching a bullish divergence where a cross above would provide more signs of price recovery. As such support and resistance can be pegged at 2200 and 2275 respectively.
Strategy
Trade may long with a stop on or below 2200.
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