Tuesday, January 7, 2014

FCPO: Still Counting On Ranging Market. 7th Jan 2014

Tuesday, 7th Jan 2014. Palm oil futures starting to retrace swiftly yesterday, hinting further weakness due to some fundamental expect while overall view remain sideline. Other news to follow.

"-U.S. stocks ended lower on Monday after data showed that the U.S. services sector grew at a weaker-than-expected pace in December. The Dow Jones Industrial Average DJIA -0.27% declined 44.89 points, or 0.3%, to end at 16,425.10. The S&P 500 index SPX -0.25% dropped 4.60 points, or 0.3%, to 1,826.77, falling for a third consecutive session. The Nasdaq Composite index COMP -0.44% slipped 18.23 points, or 0.4%, to 4,113.68. "

"-Japanese stocks fell sharply on their first day of trading in 2014, leading Asia lower on Monday, while in Shanghai, concerns over new listings weighed on share prices.

Coming back online after a long New Year break, the Nikkei Average JP:NIK -0.59%  ended 2.4% lower on Monday. The main catalyst was a firmer yen USDJPY +0.08% , which had pushed higher against the dollar in the period over the holidays. The Shanghai CompositeCN:SHCOMP -1.80%  lost 1.8% in mainland China, and Hong Kong’s Hang Seng Index HK:HSI +0.02%  shed 0.6%. Markets across the region were positioning themselves ahead of data due this week."
"-Oil futures marked a fifth-straight losing session on Monday as the prospects of rising Libyan oil supplies helped push prices to their lowest settlement in about five weeks. Natural-gas futures, meanwhile, finished little changed, but some spot prices for the heating fuel rallied in the Northeast as U.S. demand hit a record, according to Platts. February crude oil CLG4 +0.21%  fell 53 cents, or 0.6%, to settle at $93.43 a barrel on the New York Mercantile Exchange. "

FCPO- Price Still Trapped Within A Range

Yes, that is right, palm oil futures long term to medium term view remain sideline for the moment as market are juggling which direction to take this new year. With recent strengthening of Dollar, it drives most commodities prices to south, Soy bean and Soy oil are also included. Apart from weakening Soy oil price, palm oil price sentiment is also hammered by recent decline export figures. the export for Dec vs Nov 2013 dropped about 1.1% according to the cargo surveyor, ITS. However, palm oil futures current downside is likely limited judging on weak Ringgit at the moment. Cheaper palm oil price could attract more Buyers in the physical market. Technically, hourly chart are showing some breach on the support line and this scenario would mean market is likely heading down, at least for few session before it can rebound due to oversold reading. Yesterday long Bearish candle also serve as a warning for Long trader who hold their positions overnight that palm oil futures may easily descent even further below 2,600 level today. For today, pivot point for support on March contract is located around 2,586 followed by 2,566 while resistance is pegged at 2,627 followed by 2,648.  

Daily Pivot Point
R2= 2648
R1= 2627
S1= 2586
S2= 2566
 Disclaimer: Information and opinions contained in this report are for educational purposes only. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness.


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