FCPO Holding Strong Above 4200Palm oil closed bounced and closed sharply higher at 4649.
There were several factors that keep CPO prices higher:
1. Upcoming CNY in Feb 2022 raising expectations of fresh buying by China
2. Stronger soybean oil prices due to hot and dry weather concerns that threaten crops prospects in South America.
3. Malaysia keep export duty at 8% for January 2022.
4. Reaction over recent flash flood further slowdown on palm oil production
5. Labour shortage
Technical view:
1. Market closed above 4200
2. Inside bar or Harami formed at support level of 4200, indicates reversal sign
3. Stochastic level: turning up to cross above D% line
Suggestion Trade:
Market expects will continue to move higher to test on the very 1st resistance level at 4950
Initial Long if market stays above 4650
Stop Loss (Support level) 4285
Target Profit (Resistance level) TP1 4900 TP2 5000 TP 5100
Disclaimer: Trading Carries Risks.
Happy Trading!! Cheers.