PALM OIL PRICE OUTLOOK: HAS THE SEVEN-WEEK OLD DOWNTREND ENDED?

Dear Friends, Associates and Graduates of the Palm Oil Master-Traders Tutorials (MTT).

Greeting! A short message for you. What a great bearish-move!

Over the last few days, many of you emailed and asked if the bearish cycle of the crude palm oil futures ended.

It was not possible to provide a straight answer then as the daily trend-tracker GMT2/5 remained in negative-divergence and did not give any strong indication or confirmation that the downward cycle is completed. However, as at last Friday’s close “there was something to write home about”.

BMD CRUDE PALM OIL AUGUST FUTURES-DAILY-GMT2/5 SIGNALS

Green: daily closing price; Red:ESA 2-day; White: ESA 5-day

The daily GMT2/5 triggered the buy-signal as at Friday’s close and indicated that the CPO futures prices have ended its bearish-move.

For the immediate term, the August futures prices may likely rebound and could faced an immediate technical hurdle around the RM3,175-RM3,200 levels. A successful punch above these levels can generate fresh bullish momentum from technical covering and lift prices higher in the near-term.

No matter how confident we are, good discipline traders would determine their stop-loss point before taking a trade.

The Indonesian & Malaysian Palm Oil Master Trader Tutorials (MTT) would be held in Medan & Kuala Lumpur in early-July, 2012.

Kindly inform your friends in the palm industry about the MTT. Details can be obtain at www.palmoil-mtt.com

Thanks very much.

Best Regards,

G.M.Teoh
Coach/Analyst/Professional Trader/Broker/Columnist