Thursday, April 17, 2014

FCPO: Bulls Likely Stay Above 2,670 Level 17th April 2014

Thursday, 17th April 2014. Palm oil futures finally overcame the 2,670 resistance level and went up to 2,691 area yesterday, stopping just 9 points below 2,700 psychological resistance level. Others news to follow.

"-U.S. stocks rallied Wednesday, and three days of gains sent the benchmark S&P 500 into positive territory for the year. Markets got a boost from better-than-expected economic growth data in China and an upbeat industrial production report in the U.S., while positive earnings from Yahoo! Inc.YHOO -0.14%   and Intel Corp. INTC -0.30%  lifted tech stocks. The S&P 500 SPX +1.05%  ended the day 19.33 points, or 1.1%, higher at 1,862.31. The Dow Jones Industrial Average DJIA +1.00%  jumped 162.29 points, or 1%, to 16,424.85. The Nasdaq Composite COMP +1.29% added 52.06 points, or 1.3%, to 4,086.23, recouping some of the heavy losses from last week."

"-Asian markets moved higher on Wednesday as China posted slightly better-than-expected growth data. Japan also helped lead the region higher after Tokyo picked up from a recent spate of heavy selling. Hong Kong’s Hang Seng Index rose by 0.5% and the Shanghai Composite fell 0.1% after data showed that Asia’s largest economy grew by 7.4% in the January to March period compared with a year earlier, a touch higher than expectations of 7.3%. Market reaction was muted, as the figure is below the official 7.5% expansion target, and slower than the 7.7% increase in the final quarter of last year. China also released data showing its industrial output in March gained 8.8% on-year, compared with an expected 9%."

"-KAMPAR: Bukit Gelugor MP and veteran DAP leader Karpal Singh was killed when the car he was travelling in collided with a five-tonne lorry near Gua Tempurung on the North South Expressway here early Thursday. The impact of the crash at about 1am killed the prominent lawyer and his assistant, C Michael, on the spot. Karpal's son, Ramkarpal, and the car's driver, C Selvam, were injured. Karpal's Indonesian domestic helper was also injured and is in critical condition. He was on his way to Penang to attend a court case later in the day."

FCPO- We Might Be Looking At 150~250 points Run From 2,570.

First thing off before I go ahead and talk about palm oil futures outlook, my deepest condolence goes to Mr.Karpal Singh and his family. His sudden demise was a tragic to say to our country political landscape. Alright, back to the palm oil outlook, the new benchmark July went up about 1.3% yesterday amid promising price recovery on its rival product, Soy oil. Yesterday, the most actively traded Soy oil surpassed 43.00 per pound and went on up to 43.30 during Asian trading session. With these clue and couple with recent positive export figures, palm oil have most of the reasons "why" it should go up. Market sentiment should be recovering from previous MPOB negative data when cargon surveyor reported there is about 8% climb in palm oil export for 1-15th April. On the technical side, the benchmark July is likely to record another positive session today judging on yesterday Bullish price action. The 1.3% surged that blew passed 2,670 fourteen sessions highs, could also mean a new upside break out yesterday. Trader can expect another 100 points upside potential from this recent break out. To strengthen this expectation, the benchmark July must break above 2,700 level today, and no other days else. There is no magic trick how I derive 100 points potential rally, it is just the next psychological resistance level that came into mind. Trader who missed out their Long setup should always pay attention when the market did retrace down for some profit taking or price retreat down to certain pivot support level, that is where you might want to Long. For today, pivot support level is located around 2,663 while resistance is pegged at 2,713.

Daily Pivot Point
R2= 2713
R1= 2699
S1= 2663
S2=2641
 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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