Gnanasekaar T

Palm oil to consolidate, rise

Gnanasekaar T | Updated on January 22, 2018 Published on November 30, 2015


Resistances are at MYR 2,375, 2,398 & 2,430

Malaysian palm oil futures on the Bursa Malaysia Derivatives ended lower on Monday hurt by weakening exports.

CPO active month February futures edge higher as expected. As mentioned earlier, prices have been gradually inching lower, but have not given up the bullish picture yet.

As hinted earlier, good support will be seen at MYR 2,260-65 per tonne levels. Price structures are now turning friendly again, with hopes of a retest of the 2,400 levels or even higher to 2,435 in the coming sessions. Support is seen at 2,305 followed by 2,265 levels.

However, failure to hold support here could see prices dropping lower to 2,215-20 levels.

As mentioned earlier, we feel support levels could hold and prices could once again attempt to rise . This is still our favoured view.

Only an unexpected decline below 2,200 could hint that the expected rise from supports might not materialise.

Such a decline could open the downside again targeting 2,140 levels or even lower to 1,995 levels in the medium-term picture, which we do not favour.

We will now reassess the wave counts, as prices have crossed over above MYR 2,370-2,400/tonne.

A possible new impulse looks to have started again. One of our targets at 1,850 was met. The rally from there looks very impressive.

The current move could push higher towards 2,645 initially and then it could correct lower in a corrective pattern towards 2,310 or even lower to 2,250 , and then subsequently rise towards a medium to long-term target at 2,900, which could bring this current impulse to an end.

But, this is clearly a medium to long-term expectation and not to be mistaken for a short-term view.

Any dips could prove to be opportunity to participate in the upcoming uptrend. RSI is in the neutral zone now indicating that it is neither overbought nor oversold.

As mentioned in the earlier update, the averages in MACD are above the zero line of the indicator hinting a bullish trend to be intact.

Only a crossover again below the zero line could hint at a reversal in trend to bearish.

Therefore, look for palm oil futures to consolidate and rise again.

Supports are at MYR 2,310, 2,265 and 2,220. Resistances are at MYR 2,375, 2,398 and 2,430.

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

Published on November 30, 2015

A letter from the Editor

Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.