• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest
• The New Manager

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Malaysian crude palm oil futures ended at one-month high helped by firm soya oil futures.

CPO active month contract is moving perfectly in line with our expectations.

As mentioned in the previous update, a daily close above 2,550 Malaysian ringgit (MYR) a tonne has rekindled bullish expectations for a retest of the recent highs or even higher. It needs to be seen if the move above the highs can be sustained.

We expect a sharp decline once prices cross above the recent highs. With the way CBOT soya oil futures are poised, the psychological resistance for CPO futures at 3,000 MYR/tonne could easily be tested.

A minor corrective dip to 2,565 MYR/tonne cannot be ruled out before it aims at the psychological resistance. A new impulse began from 1,427 MYR/tonne as per the recent wave counts. We are in the fifth wave move of that impulse. We can expect a corrective A-B-C to begin after the current impulse ends. RSI is in the overbought zone now and minor indications of negative divergence indicating bearishness to set in soon. The averages in MACD are still above the zero line in the indicator suggesting bullishness to be intact. Therefore look for palm oil futures to rise higher and test the resistance levels.

Supports are at 2645, 2680 and 2745 MYR. Resistances are at 2605, 2565 and 2450 MYR.

Gnanasekar. T

(The author is the Director of Commtrendz Research and also in the advisory panel of Multi Commodity Exchange of India Ltd (MCX). The views expressed in this column are his own and not that of MCX. This analysis is based on the historical p rice movements and there is risk of loss in trading. He can be reached at gnanasekar_thiagarajan@yahoo.com.)

Stories in this Section
Low volumes keep spot rubber flat

Copyright © 2007, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line