01/11/2017

FCPO Jan 18

Yesterday Close: 2816

FCPO see sharpest intraday decline in 3 weeks on weaker soyoil and concern of building inventory. The Oct full month export rose 2.5% according to ITS, gains in exports have been slowing since mid of Sep as demand ebbs after the major festivities of Diwali in India and festival in China. Palm oil usage usually slows during winter in markets as palm oil solidifies in cold temperatures. Market awaiting MPOA and SPPOMA full month production to be release in coming days. Production data is relatively important than yesterday export as market have factored in slower demand with seasonal factor. Dailian Palm Olein trade with little change while soyoil trading 0.6% higher then yesterday 6 pm price.

In the daily chart, the “doji” candlestick pattern has almost confirm the reversal pattern. This pattern was named “Bearish Abandoned Baby”. Please monitor 2810 (recent low) to confirm the reversal signal. In the hourly chart, RSI at lower low, while price awaiting 2810 confirm sell.

Price Level to monitor today:

Resistance 2855 2883

Support 2827 2819

Recommend Trading Plan for Today:

1. Buy if price higher than 2855, target 2883, stop 2827

2. Sell if price lower than 2810, target 2782, stop 2838

Margin requirement (per lot)

Intraday     RM 2500

Overnight  RM 5000

Spread       RM 1000

Disclaimer: Idea for sharing, trade at your own risk