FCPO Elliot Wave Analysis 20.12.2018

Yesterday, FCPO climbed higher in a decisive manner and derailed our expanded triangle projection into a flat correction. As we go back up to higher timeframe (daily), we could see that the the upper line of the acceleration channel is broken. It is an early indication that wave ④ is currently in progress but we think this could be a brief overshoot before market starts to trade below 2200 again. 

We can quickly brush off the development of wave ④ if

1) FCPO is able to trade within the acceleration channel again

2) The lower channel line of the corrective wave is broken

The above-mentioned EW count is an alternate count should FCPO further develops within the deceleration channel (wave ④) (primary EW count on #analysis #17Nov18)

As market maintains its bullish posture, following are areas of interest

1. 2206 - 2220

2. 2246 - 2260

Disclaimer: This only for education purpose. Not a buy call or sell call from us.

Technical View FCPO 20.12.2018

• 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.