Dear Friends, Associates & Graduates of the Palm Oil Master-Traders Tutorials (MTT).
Crude Palm Oil futures prices were locked in a tight trading band over the last ten trading weeks. Four trading signals were given by the weekly GMT Trend-Tracker (see chart) and the signals only resulted in mild follow through.
These trading patterns suggest that the market has entered into a range-trading phase and these scenarios are expected to persist for some time.
The weekly GMT Trend-Tracker signal turned negative on Friday’s closes (7th Sept) and suggested that prices would stay range-bound with the possibility of some mild technical rebound.
For the intermediate term, CPO prices are expected to be well supported around the RM2,900-RM2,875 levels. However, should these levels be violated in the coming sessions, we can expect to see some strong selling-pressure linked to speculative and stale-bull liquidation followed by renewed hedge selling.
Overhead resistance is now seen at the RM3,000-RM3,050 levels. Should prices punch above these levels in a technical rebound, there is a strong possibility that prices would trend higher to re-test its recent-highs at the RM3,100-RM3,150 levels.
BMD CRUDE PALM OIL NOVEMBER FUTURES-DAILY-GMT-TT SIGNALS
The Indonesian CPO Futures traded at the ICDX ranged within the IR9,500 to IR8,500 per kilo levels over the last two-and–a-half months and ended the week at the lower end of these trading band.
The market turned negative on Friday, 7th September based on the trading-signal from the daily GMT Trend-Tracker. In the event of a continuation of the downward-move, the November futures prices are expected to test its lower band-trading around the IR8,500-IR8,200 per kilo.
From now till mid-November, the ICDX CPO futures prices are expected to stay locked within the IR9,500-IR8,500 levels.
ICDX CPO NOVEMBER FUTURES-WEEKLY GMT-TT SIGNALS
May The Good Force Be Always With You.