FCPO continue 6400 or Short Term Correction?FCPO set their biggest weekly gains in more than 9 months despite a sharp drop on Friday, as Russia’s attack on Ukraine stoked worries about global edible oil supply.
I believe who traded last week hopefully you were enjoy the roller coaster ride in the market.
For your information, Ukraine is a major key supplier of grains and oilseeds globally, any further threats to trade will shift demand for other vegetable oil such as SBO and CPO.
As we all knew that the unresolved Ukraine crisis may further erode the supply of vegetable oil, grains, crude and natural gas due to the grain flows disruption in Black Sea export region with all transportation avenue were disrupted by military operation.
Besides, India stopped buying sunflower oil following ports suspended operation on Russia’s invasion of Ukraine. India pivot to alternate oils could further support Malaysian palm oil and US soyoil.
On the other hand, surging in COVID cases also keep palm oil prices elevated for 1H2022 as shortage of labour and supplies.
Furthermore, worsening yields in Argentina and Brazil pushed importers to buy from alternative supplier.
Technical View:
Market uptrend remains with immediate support at 5825.
Stochastic K% line is crossing down at overbought zone in both weekly and daily chart which indicates reversal signal
We expect market may have short term retracement with immediate support level at 5625
Suggestion Trade:
Short if stay below 5885
Target Stop Loss (resistance level) 6023
Target Profit level (support level)
TP1 5747 TP2 5471
Long if stay above 6200
Target Stop Loss (support level) 6062
Target Profit level (resistance level)
TP1 6338 TP2 6614
** DISCLAIMER: FOR INFO ONLY. TRADING CARRIES RISK **
