Will CPO Back to 7000?
Last week market extended gains as expected and closed higher at 6468. Congratulations if you have refer to our trading plan to Long above 6030 and took profit at 6232.
Let’s have a look on the factors that impact on palm oil prices last week.
1. India’s palm oil purchases are expected to increase for a 3rd month as traders and importers are preferring the tropical commodity over expensive soybean and sunflower oils
2. sign of peace talks are diminishing after Russian President made his first public comments that Ukraine had hit a dead end on negotiation. It would also mean that the war will continue to grind on.
3. Besides, Adverse weather in U.S. plains states raise new round of supply fear offset weak demand from China due to surge in Covid-19 case
4. Supply losses in sunflower oil has led to demand surge on other edible demand ahead of Muslim’s festive next month.
5. Soybean oil extended gains as Argentina truckers agreed to call off a strike that paralysed soy and grains transport in the country since Monday.
Truckers and official agreed to have a virtual meeting in order to reach agreement to end protest by truck owners demanding higher freight rates.
6. Strong crude oil prices after position covered and news that the European Union might phase in a ban on Russian oil imports.
This make palm more attractive option for biodiesel feedstock.
Technical View:
1. Long White bar formed indicates bullish signal in the market.
2.Stochastic showed mixed signals.
As K line crossing up in weekly which indicates uptrend signal. While K line reached overbought level at 91.48, which indicate market likely to face selldown
We expect market may face selling force with immediate resistance level at 6700, before it resume its uptrend.
Suggestion Trade:
Long if stay above 6485
Target Stop Loss (support level) 6280
Target Profit level (resistance level)
TP1 6690 TP2 7100
Short if stay below 5900
Target Stop Loss (resistance level) 6105
Target Profit level (support level)
TP1 5695 TP2 5285
*Disclaimer: Trading Carries Risks*
Let’s have a look on the factors that impact on palm oil prices last week.
1. India’s palm oil purchases are expected to increase for a 3rd month as traders and importers are preferring the tropical commodity over expensive soybean and sunflower oils
2. sign of peace talks are diminishing after Russian President made his first public comments that Ukraine had hit a dead end on negotiation. It would also mean that the war will continue to grind on.
3. Besides, Adverse weather in U.S. plains states raise new round of supply fear offset weak demand from China due to surge in Covid-19 case
4. Supply losses in sunflower oil has led to demand surge on other edible demand ahead of Muslim’s festive next month.
5. Soybean oil extended gains as Argentina truckers agreed to call off a strike that paralysed soy and grains transport in the country since Monday.
Truckers and official agreed to have a virtual meeting in order to reach agreement to end protest by truck owners demanding higher freight rates.
6. Strong crude oil prices after position covered and news that the European Union might phase in a ban on Russian oil imports.
This make palm more attractive option for biodiesel feedstock.
Technical View:
1. Long White bar formed indicates bullish signal in the market.
2.Stochastic showed mixed signals.
As K line crossing up in weekly which indicates uptrend signal. While K line reached overbought level at 91.48, which indicate market likely to face selldown
We expect market may face selling force with immediate resistance level at 6700, before it resume its uptrend.
Suggestion Trade:
Long if stay above 6485
Target Stop Loss (support level) 6280
Target Profit level (resistance level)
TP1 6690 TP2 7100
Short if stay below 5900
Target Stop Loss (resistance level) 6105
Target Profit level (support level)
TP1 5695 TP2 5285
*Disclaimer: Trading Carries Risks*
Disclaimer
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