Assallamualaikum warahmatullahi wabarakatuh
Analisa Crude Palm Oil Futures (FCPO) 14/02/2017
Technical
Crude Palm Oil futures traded at Bursa Malaysia extended its losses, hitting two-week low as prices were weighed down by prospect of improving levels in production.
The benchmark April 2017 delivery fell RM35 or 1.1% to settle at 3,036 ringgit per metric ton. Total volume traded recorded at 68,361 lots while open interest rose to 199,810 contracts from 197,457 contracts.
Market action saw the contract price upside was capped by 20 days moving average line, but supported by lower Bollinger band.
RSI momentum bias downside with 42.7 reading.
Price swung to day high 3,093 in the morning but unable to move higher as 20 days moving average line capped its upside. Then it fell to low at 3019 but ended slightly higher at 3035, as it was supported by the lower Bollinger band. It recorded another wide trading range of RM74. Daily candlestick chart seen 2 long red candle which is a bearish candle posing caution to Long position holders
Market expectation to open neutral to weaker today, amid Ringgit strengthen slightly (USD/MYR @ 4.4482 -0.09). Market is expected to have resistance of 3,070 and 3,057 capping further rise, while support should peg at 3,025 lower Bollinger band and 3,000, further down at 2,963.
Fundamental
Stronger Ringgit and prospect of improving levels in production pressure prices. –Neutral to negative
Soybean oil March closed 1.27% lower at USD34.17 cents per pound, tracking on palm oil. –negative
Crude oil tumbled on stronger dollar and rising U.S rig count. –negative
