Tuesday, March 27, 2012

CPO: Poised To Retest RM3500-3600 Resistances

Commodity to watch: CPO

CPO: Poised to retest RM3500-3600 resistances

CPO prices jumped 1% to RM3459/MT (+8.9% YTD) amid positive news by SGS that for the first 25 days of March, exports of Malaysian palm oil products rose 6.6% to 1,055,071 tonnes from a month ago, while Intertek Testing Services said exports
gained 7.7% to 1,068,774 tonnes. The uptrend is also in line with the overall bullish CPO forecasts by the industrial experts (ranging from RM3000-4500) during the Palm Oil Conference in March. Current prices are also trading at 5.7% above 2011’s average of RM3274 and 8.1% of YTD average of RM3200.

In view of the bullish technical readings, there could be further upside to retest RM3500-3600 zones before profit taking consolidations emerge. Medium to long term significant resistance targets are RM3900-4000.

Short term supports are RM3334 (mid Bollinger band), RM3304 (30-d SMA) and RM3241 (50-d SMA). Uptrend will be disrupted if prices break below RM3241.

Daily CPO - Bullish Technicals May Spur Prices Higher Towards RM3504-RM3682
CPO 27-03-2012

Weekly CPO - Bullish Flag Candle Signals Medium Term Upside Near RM3900-RM4000
CPO 27-03-2012a

Source: HLIB Research

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