The CPO prices resumed its uptrend in earnest after the two weeks of consolidation phase in mid-November came to an end by violating the short-term downtrend line. Having been stuck in between the RM2,700-RM2,800 / tonne area for more than a year, the prices started to rally furiously in recent months following the major breakout from the “Ascending Triangle”.
Both the near-term and mid-term technical outlook of the CPO market will remain bullish as long as prices stay above the RM2,700-RM2,800 / tonne area. The fast appreciation of CPO prices since October this year basically reaffirms our view that the breakout from the RM2,800 /tonne level had substantially improved the futures market’s technical landscape.
Nevertheless, the market will soon be facing a very tough challenge at the formidable RM3,750 /tonne level. After the CPO prices sharply tumbled in 1Q08, four major failed rebound attempts were seen at the RM3,750 / tonne level in the subsequent 4 months. As a result, the RM3,750 has become a very tough resistance and the market is now trading not too far away from this level. We might see the uptrend taking a breather at around this level. However, should this level be taken out, we are eyeing the RM4,000 / tonne level as the next resistance. To the downside, look for an immediate support at the RM3,452 / tonne level followed by the RM3,100 / tonne level.
Both the near-term and mid-term technical outlook of the CPO market will remain bullish as long as prices stay above the RM2,700-RM2,800 / tonne area. The fast appreciation of CPO prices since October this year basically reaffirms our view that the breakout from the RM2,800 /tonne level had substantially improved the futures market’s technical landscape.
Nevertheless, the market will soon be facing a very tough challenge at the formidable RM3,750 /tonne level. After the CPO prices sharply tumbled in 1Q08, four major failed rebound attempts were seen at the RM3,750 / tonne level in the subsequent 4 months. As a result, the RM3,750 has become a very tough resistance and the market is now trading not too far away from this level. We might see the uptrend taking a breather at around this level. However, should this level be taken out, we are eyeing the RM4,000 / tonne level as the next resistance. To the downside, look for an immediate support at the RM3,452 / tonne level followed by the RM3,100 / tonne level.
No comments:
Post a Comment