Malaysian palm oil futures on the Bursa Malaysia Derivatives ended lower on Friday on rising global oilseed supply and falling exports ahead of a long weekend. Persistent weakness in the soya complex continues to weigh on Bursa Malaysia Derivative Exchange’s crude palm oil.

Malaysian markets are closed on Monday and Tuesday for Eid. Cargo surveyors SGS estimated that exports of Malaysia’s palm oil products for July 1-25 fell 1.6 per cent to 1,078,253 tonnes compared with the month ago period.

Crude palm oil active month October futures are lower as expected.

As mentioned in the previous update, prices could possibly be targeting MYR 2,250/tonne on the downside.

Also, as discussed, several targets are seen being tested in the coming sessions on the break below 2,275 levels.

Support will be seen near 2,265-75 followed by important support at 2,245-50 levels.

Below here the market could be inclined to test further lows near 2,185 levels too.

Though the undercurrent is weak, prices are still displaying some bullish tendencies.

Prices are holding well above 2,245-50 levels and an up move or pullback looks likely in the coming sessions.

While MYR 2,250 holds, prices are expected to test resistances at 2,355-65 initially or could even extend towards 2,395-2,400 levels.

Fall below 2,245 could see prices declining to 2,185-2,200.

As mentioned earlier, prices met an intermediate wave target at MYR 2,135/tonne and corrective decline to 2,345-50 levels, followed by a sharp third wave move to 2,575-2,600 materialised.

Price structures suggest a possible third wave move ending at 2,690 and a corrective, fourth wave with targets at 2,450 now. The fifth wave possibly ended at 2,898 and a corrective A-B-C in progress with an equality target now stretching to 2,185 levels now.

RSI is in the neutral zone now indicating that it is neither overbought nor oversold.

However, the averages in MACD are still below the zero line of the indicator hinting at a bearishness to be intact.

Only a crossover again above the zero line could result at resumption in the bullish trend.

Therefore, look for palm oil futures to test supports and then rise again.

Supports are at MYR 2,255, 2,210 and 2,185. Resistances are at MYR 2,300, 2,355 and 2,395.

The writer is the Director of Commtrendz Research. There is a risk of loss in trading.

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