The palm oil futures market completed the massive “Double Peak” structure by violating the “Neckline” support last month. As it took about 6 months to complete the “Double Peak”, the accuracy of this bearish reversal signal should be rather high.
We maintain our firmly bearish bias view on the near-term technical outlook of the palm oil futures market. We can see from the above daily chart that the price has been slowly trending lower since the “Double Peak” was created.
From the current level, there is a very tough resistance at the “Neckline” situated at the RM2,393 / tonne level, followed by the RM2,400 / tonne psychological level. To the downside, we are eyeing the recent low of M2,270 / tonne level as the immediate support. Technically, the rebound from the recent-low is due to the support provided by an “Upside Window” created in November 2009. Next support is seen at the RM2,215 / tonne level.
We maintain our firmly bearish bias view on the near-term technical outlook of the palm oil futures market. We can see from the above daily chart that the price has been slowly trending lower since the “Double Peak” was created.
From the current level, there is a very tough resistance at the “Neckline” situated at the RM2,393 / tonne level, followed by the RM2,400 / tonne psychological level. To the downside, we are eyeing the recent low of M2,270 / tonne level as the immediate support. Technically, the rebound from the recent-low is due to the support provided by an “Upside Window” created in November 2009. Next support is seen at the RM2,215 / tonne level.
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