Last week’s retracement back below the RM3,750 / tonne level indicates that the CPO market had experienced another failed breakout attempt at this level. After CPO prices tumbled sharply in 1Q08, there were actually four major failed rebound attempts at the RM3,750 / tonne level in the 4 months that followed. Hence, last week’s action represents another failed attempt at this level after more than 2 years.
Anyhow, the failed breakout attempt at the RM3,750 / tonne level has not altered the market’s solid rising trend. CPO price are still expected to extend higher aggressively in the near future as long as it stays above the uptrend line as is indicated in the above daily chart.
Even if the uptrend line is violated, the breakdown will not alter our longer-term outlook towards the CPO market. As we mentioned many times before, the breakout from the RM2,800/tonne level, which coincided with the breakout from the “Ascending Triangle”, had substantially improved the CPO futures’ technical landscape. The mid-term technical outlooks of the CPO market will remain bullish as long as prices stay above the RM2,700-RM2,800/tonne area.
From the current level, there is immediate resistance at the RM3,750 / tonne level, followed by the RM4,000 / tonne level. To the downside, immediate support is seen at the RM3,471 / tonne level.
Anyhow, the failed breakout attempt at the RM3,750 / tonne level has not altered the market’s solid rising trend. CPO price are still expected to extend higher aggressively in the near future as long as it stays above the uptrend line as is indicated in the above daily chart.
Even if the uptrend line is violated, the breakdown will not alter our longer-term outlook towards the CPO market. As we mentioned many times before, the breakout from the RM2,800/tonne level, which coincided with the breakout from the “Ascending Triangle”, had substantially improved the CPO futures’ technical landscape. The mid-term technical outlooks of the CPO market will remain bullish as long as prices stay above the RM2,700-RM2,800/tonne area.
From the current level, there is immediate resistance at the RM3,750 / tonne level, followed by the RM4,000 / tonne level. To the downside, immediate support is seen at the RM3,471 / tonne level.
No comments:
Post a Comment