- Malaysia’s palm oil futures rose more than 2 percent to an eight-week high on Wednesday evening, tracking gains in U.S. soyoil on the Chicago Board of Trade and palm oleainon China’s Dalian Commodity Exchange.
- Market is showing more positive sentiment. Seasonal first quarter strength is being aided by strong gains in nearby positions, in spite of expectations that stocks will rise further in Dec, although there were reports of lack of tenderable tank space. Meanwhile reports of drought in some areas of Brazil's soybean belt will also be supportive.
- Technical view - Prices testing strong resistance around 2200. Indicators remain positive. The oversold situation indicated in the stochastic may see some downward correction.
- Technical suggests momentum in short term to medium term has shifted to the upside, eyeing resistance area near 2230 ( using descending trendline ), however signs of overbought appearing with candlestick now in upper boundary while RSI near 70.
- Waiting for a pullback towards a new higher low above 2140 may help to limit losses if prices turns further down, Critical support remains at 2140
Disclaimer: This only for education purpose. Not a buy call or sell call from us.
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