Johnkiew

FCPO - Head and Shoulder Breakdown

Short
Johnkiew Updated   
MYX:FCPO1!   Crude Palm Oil Futures
The current forward curve in FCPO are trading at the steepest contango throughout the year. The sluggish front months is suggesting market having high inventory.

The price have breakdown significant price level 2137, and this break down also confirm the head and shoulder formation which use 4 months to formed. The pattern projection is targeting 1970.

If price is trading below 2137, next support at 2078, 2033 & chart pattern target 1970.

Trade closed: target reached:
Price found temporary support around 2078 yesterday. With bearish production data in Indonesia, the selling in palm oil likely to continue and approaching next target 2033.
Trade closed: target reached:
FCPO continue to South with sluggish demand and no indication of production peak. Spot month December trading below 2000 is suggesting high stocks.

Price is heading head and shoulder target 1970 if below 2033.Refering to third month futures price.
Trade closed: target reached:
Price reached head and shoulder target 1970.
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