Friday, November 20, 2009

FCPO Technical Outlook 20112009

Good Morning, lets get into business. Lets roll the news 1st. 
-Dow Jones retreated by 93.87 to 10332.44, having more distance with its 13month high. Dow Jones taking a breathe after reaching its 13month high, also market on speculation that the surge in stock market is already outpaced the real economic growth. The tumble in oil prices and yields on treasury 3month bills turned negative gave some pressure on the market upward momentum.
-Many among exporters said export demand may continue to rise if bad weather conditions continue in key oilseed-growing areas in the region, threatening to disrupt harvest and leading to a possible tightness in global vegetable oils supply. Thunderstorms and rains have affected Malaysia's oil palm growing regions over the past few days and may lead to localized flooding in Johor, the country's key growing region. - Dow Jones Newswires
-Crude oil traded below $78 a barrel in New York after falling yesterday as the dollar strengthened and amid concerns about the pace of recovery in the U.S., the world’s biggest energy consumer. NYMEX crude oil for December delivery fell $2.12, or 2.7 percent, to $77.46, the biggest decline since Nov. 12.

FCPO Daily Chart















Yesterday correction was a vital sign of a healthy uptrend. We may not see another round of correction as bullish momentum on soya bean and soya oil. Possible strategy at the moment would be buy into weakness, if the market gap up lets see if it could 2,420.Breaking this level would mean another new high for CPO, which will be another indication of strong uptrend.

Soya Bean Daily Chart


















Resistance trendline break ! It should give some support to CPO and commodities prices.
Crude Oil Daily Chart

Steady climb for Crude oil price, but I expect crude to soften or correct as previous week price behavior was unable to remain steady above $80 per barrel.
Disclaimer: The author is not liable for any loss incur due to this write up and trade recommendations made by this websites.

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