Dear Friends & Associates,
Wishing you the very best in the Year of the Dragon & may the good force be with you all.
May your hedging and trading & your entry & exit timing be inline with the direction of the palm oil market.
The Indonesian & Malaysian palm oil prices congested in range trading over the last eight trading days and settled today slightly negative.
As at Thursday’s close, the GMT2/5 trend-tracker showed that the BMD CPO futures immediate term price outlook is slightly negative with the 2 and 5 period MAV-lines entering into a bearish convergence. Triggering of the sell-signal would mark the start of a downward adjustment. (see BMD and ICDX daily charts).
Presently, the BDM crude palm oil futures has an immediate technical support at the RM3,150-RM3,130 levels. Violation of this support would signal the start of a downward wave. Meanwhile, immediate resistance is pegged at the RM3,250-RM3,230 levels. The main trend is deemed to be back to it bullish mode if these overhead hurdles are successfully vaulted.
Meanwhile, the Indonesian palm oil futures traded at the ICDX has projected the same setting as Kuala Lumpur.
The GMT2/5 indicator at the ICDX closed Thursday in negative convergence and called for a minor correction in the coming days.
Resistance for the immediate term is seen at IR9,350-IR9,450 levels. A successful punch through these levels would signal the resumption of the upward trend.
Chart-support for the near term now stands at the IR9,150-IR9,175 level. Overall trend would likely turn south if these important supports were to be breached.
The Indonesian Palm Oil Master Trader Tutorials (MTT) conducted by me would be held in Medan on 20th & 21st, February and in Jakarta on 23rd & 24th, February, 2012.
The Malaysian Palm Oil Master Trader Tutorials (MTT) would be held in Kuala Lumpur on 8th & 9th March, 2012. (Immediately after the POC 2012)
For details kindly go to www.palmoil-mtt.com
(Chief Coach-Palm Oil Master Trader Tutorials)