Assallamualaikum warahmatullahi wabarakatuh
Crude Palm Oil Futures (FCPO) 31/01/2017
Technical
Crude palm oil futures traded at Bursa Malaysia Derivatives fell 0.55%, as stronger ringgit and weaker soyoil pressured the prices. Third day of losses, due to profit taking activities ahead of Lunar New Year holiday . The benchmark April 2017 contract fell 17 ringgit to settled at 3,070. Half day trading recorded market participation volume of 15,868 lots. Open interest decreased slightly to 184,798 contracts from 187,614 contracts the previous trading day.
Market action saw prices open gapped down below lower Bollinger band but rebounded and close above the lower band. – Neutral to Negative
Market close below 10days and 20days moving average. - Neutral to Negative
RSI momentum level at 45.7. - Neutral
Palm oil traded but at the moment supported by the lower band. Price resistance located at middle Bollinger band 3084, then follow by 3100, further up at 3119. As for support, located at lower Bollinger Band 3,049, then follow by 3028, and further down 3013
Fundamental
Palm oil retraced on stronger ringgit and weaker soyoil added pressure on the palm oil prices. And today will be the release of export data for 1-31days of January. – Neutral to negative
CBOT soybean oil futures close 1.93% lower and ended at 33.61 cents/lbs, uncertainty about the Trump’s action on immigration. – Negative
Crude oil fell as news of weekly increase in U.S. drilling activity had oil forecasters concerned that production cuts may not reduce the global supply gut as much as had been hoped.– neutral to negative
