Last month, the palm oil futures market experienced an extremely critical breakdown at the RM2,393 / tonne level, which completed the massive “Double Top” formation that took more than 6 months to complete. Theoretically, the accuracy of this massive bearish reversal pattern should be very high. Palm oil prices should have fallen much further after violating the RM2,393 / tonne level, which is the “Neckline” of the “Double Top”
Surprisingly, in less than a month after taking out the critical RM2,393 / tonne level, prices actually bounced back above the “Neckline”. This is highly unusual, both theoretically and in the actual trading environment. The return back above the “Neckline” coupled with the violation of the downtrend line stretching from the RM2,722 / tonne level basically completely overturned the previous highly bearish scenario.
In June, it was still a very bearish technical landscape for the palm oil futures market. And after yesterday, we are seeing a very different technical picture. Near-term technical outlook of the palm oil futures market has now become bullish. We believe the recent rebound back above the “Neckline” has caught almost every technician off guard.
From the current level, there is immediate support at the RM2,393 / tonne level, followed by the RM2,270 / tonne level. To the upside, immediate resistance is now seen at the RM2,600 / tonne level and followed by the RM2,660 / tonne level.
Surprisingly, in less than a month after taking out the critical RM2,393 / tonne level, prices actually bounced back above the “Neckline”. This is highly unusual, both theoretically and in the actual trading environment. The return back above the “Neckline” coupled with the violation of the downtrend line stretching from the RM2,722 / tonne level basically completely overturned the previous highly bearish scenario.
In June, it was still a very bearish technical landscape for the palm oil futures market. And after yesterday, we are seeing a very different technical picture. Near-term technical outlook of the palm oil futures market has now become bullish. We believe the recent rebound back above the “Neckline” has caught almost every technician off guard.
From the current level, there is immediate support at the RM2,393 / tonne level, followed by the RM2,270 / tonne level. To the upside, immediate resistance is now seen at the RM2,600 / tonne level and followed by the RM2,660 / tonne level.
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