yapwanway

Trading Retracement

Short
MYX:FCPO1!   CRUDE PALM OIL-RINGGIT FUTURES
FCPO is in down trend. Price rebound from strong support and hit Fib 0.382. Opening price is lower then previous day. If price closes lower it may resume to down trend. If price goes higher, it may hit Fib 0.618 and resume down trend. Fundamentally, CPO stock is high with increased production. The recent price hike is partly due to Malaysian B10 mandate. However it is unlikely to boost demand as the higher mandate could only absorb about 750,000-780,000 mt/year of CPO in Malaysia (from 500,000 mt/year currently)- quoted from S&P Global Platts, Author Samar Niazi . The impact on price is deem to be short term.