CRUDE PALM OIL PRICES EXPECTED TO TREND HIGHER FOR THE IMMEDIATE TERM
Dear Friends, Associates & Graduates of the Palm Oil Master-Traders Tutorials (MTT).
A short note on the latest trend analysis of the crude palm oil futures market following the GMT2/5 buy-signal of 19th June.
BMD CRUDE PALM OIL SEPTEMBER FUTURES-DAILY-GMT2/5 SIGNALS
The September futures prices surged more than RM100 per tonne on 20th June on a strong wave of technical short-covering and fresh buying. The bullish-move immediately lost its upward momentum on 21st June and 22nd June with prices dropping sharply on long-liquidation and light hedge selling pressure, causing the September futures to give back all of its previous day’s excessive gains.
On Monday, 25th June, the bullish momentum returned as early aggressive buying lift values sharply higher with a opening gap-up of RM85 per tonne and settled with big-gains. The trend-tracker GMT2/5 settled the day constructive in positive divergence, suggesting that the newly developed strength is sustainable.
The big question facing traders now is can the market expand on its bullish momentum and convincingly lift prices off from its 10-week old sell-off lows?
My technical gut-feeling tells me that we are likely to see more upside trading for the short-term.
An immediate price hurdle now stands at RM3,060-RM3,075 levels and a successful punch through this resistance would clear the path for a test of the immediate term upside price-target around the RM3,175-RM3,230 levels.(see chart)
My protective trailing sell-stops at this juncture would be set at the 2,990-2975 levels in the event of additional buying.
Commodity trading is always about the BULL and BEAR, ever wondered why?
My Indonesian & Malaysian Palm Oil Master Trader Tutorials (MTT) would be held in Medan on 28th & 29th September & Kuala Lumpur on 6th & 7th July, 2012.