Will CPO Sustain Above 6300 to Resume Uptrend?Market posted weekly gains and closed at 6027 after failed to sustain above 6300.
Let’s have a look on what were the key factors move the market.
1. Rally in crude oil prices after an attack on Saudi oil facilities by Yemen’s Iran aligned Houthi Group over the weekend and caused jittery in global oil market.
2. Rising in soybean oil prices as Russia’s troop in Ukraine seizing and destroying agricultural machinery, fertiliser, seeds and fuel stocks. Furthermore, Argentina government raised their export tax for soybean oil and soybean meal from 31% to 33%.
However, weaker than expected export demand for palm oil and reversed in crude oil prices limited upside for palm oil prices
Traders remained cautious ahead of the summit meeting between US president and NATO allies amid high expectations that US will announce a series of new economic sanctions against Russia
Technical View:
1.Inside bar formed which indicates reversal signal that market likely to resume uptrend
2.Stochastic showed mixed signal as K% line is moving down in weekly but crossed up in daily chart.
We expect market may move higher if market able to break and sustain above 6300.
Suggestion Trade:
Long if stay above 6250
Target Stop Loss (support level) 6043
Target Profit level (resistance level)
TP1 6457 TP2 6871
Short if stay below 5800
Target Stop Loss (resistance level) 6007
Target Profit level (support level)
TP1 5593 TP2 5179
Disclaimer: Trading Carries Risks.
Happy Trading!! Cheers.
