Over the last the last twelve trading-days, CPO futures prices ranged within a tight congestion band of RM80, reflecting trader’s uncertainty over the direction of the market.
Is this the calm-before-the-storm?
In April, the daily G.M.Teoh Trend-Tracking indicator gave four clear trading signals. The sell-signal of April 9th resulted in a sharp decline in prices while the other three trading-signals ended with mild moves that lacked strong follow-through actions.
As as the close of April 29th, the G.M.Teoh trend-tracker triggered the sell-signal and suggested that the downward wave would expand. Please see chart below.
The BMD July futures has an immediate price-support at the RM2,270-RM2,260 level. Violation of this important technical chart-base could generate fresh technical-selling and force the July futures prices lower to seek a fresh base around the RM2,220-RM2,210.
Currently, the market is at their decline-lows and the prospects of an unexpected minor upward price adjustment on account of technical short-covering activities cannot be ruled out.
In any case, an overhead resistance is seen for the July futures at the RM2,330-RM2,350 levels. This important technical-hurdle could be visited in the event of such an eventuality.
BMD CRUDE PALM OIL – JULY FUTURES.
INDONESIA COMMODITY & DERIVATIVE EXCHANGE (ICDX)
The Indonesian Commodity & Derivative Exchange (ICDX) crude palm oil futures ended April neutral-to-slightly positive.
The G.M.Teoh trend-tracker gave the buy-signal for the July futures on April 24th and managed to remain constructive on May 1st close. (please see chart).
An immediate overhead barrier now stands at the IDR 7,500-IDR7,550 per kilo levels and a successful push above these levels would signal the continuation of the upward momentum.
Chart-support for the immediate term is now seen at the IDR 7,200-IDR 7,100. Violation of these supports would mark the start of a downward cycle.
ICDX – JUL CPO FUTURES
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