FCPO 3rd Month >>> Commentary and Technical Analysis 19 Dec 2012

FCPO Daily Technical Analysis:
The FCPO active month contract ended lower on Tuesday as weak export data released by ITS and SGS remained weighed on the market sentiment. Moreover, uncertainty in the external markets also added some pressured. At the close, the FCPO price was down 8 pts to 2,342.

Based on the daily chart, an uncertain candle had been formed on Tuesday and during the trading session, the FCPO price went up to as high as 2355 but it failed to close above that level. Throughout the day, the price had lingered in a narrow range between 2,330 to 2,355. Our review remain unchanged, if the price fall further, the downside gap will be watched first and to rise further, it need to break and close above the level of 2,380.
Referring to the MACD indicator, MACD line crossed above the signal line where the bullish sentiment could be building up in the near term. As always, intraday support and resistance levels will be eyed.

Technical indicators:

MACD= Positive, ADX= Neutral,

 

Intraday Technical Support & Resistance for 19th Dec 2012:

1st support 2,300; 2nd support 2,285-2,250

1st resistance 2,350; 2nd resistance 2,380-2,400
 

GOODLUCK

CPO Futures Preview 15 Feb 2012

Fundamental
Palm oil prices rose on Tuesday, on the back of the rally in US soybeans as investors worried about the adverse weather conditions in South America affecting crop yields. In addition, the weakening of the Ringgit against the dollar spurred demand for the tropical oil. 

Overnight crude oil fell, tracking weaker retail sales figures in the US, as well as fresh concerns on Europe over a potential downgrade of its triple-A ratings for France, Britain and Austria. On the other hand, US soyoil rose to a near four-month high yesterday, due to production concerns in Brazil and signs of fresh US export demand. Expect futures to trade range bound with upwards bias today as lingering European issues may counter the adverse weather conditions in South America.

Overnight Leads
US soybean futures end mostly higher, with old crop contracts rallying to nearly four-month highs.
Soybean futures rose for the third consecutive trading day, fueled by worries about hot, dry
conditions in southern Brazil leading to lower crop yields, analysts say.

Technicals
Futures closed at 3205.0, up 2.36 percent. Futures managed to settle above psychological level of 3200 depicted by a long white candle as strong buying interest seen throughout the day. A sustained break above this level would likely see futures head towards testing 3240. The MACD reaffirmed the bullish outlook as it crossed its 8-day moving average on a bullish divergence. As such, support and resistance can be pegged at 3185 and 3240 respectively.

Strategy : Aggressive trade may long with a stop on below 3185.

HAPPY TRADING