CPO Price To Move Sideways
Jumat, 10 Januari 2014 | 08:54
PT. Monex Investindo Futures predicts the crude palm oil (CPO) price will move sideways. An Research and Analyst, Zulfirman Basir, said CPO is still trapped on rectangle“Beware of the daily closing level beyond the lower limit of the rectangle pattern (at RM2,506) because it can trigger a deeper decline,” he said on a report published today (1/9).
From the fundamental side, the depreciation of the Malaysian Ringgit Indonesian Rupiah and is still able to give hope for improvement in the outlook for palm oil exports of both palm oil producing countries of the world. However, investors are quite cautious with increasing substitution palm oil product for bio-energy (such as soy and sunflower seeds) which can reduce the demand for palm oil.
According to Monex Investindo Future, outlook for palm oil has become neutral, but short position is more appropriate with stop-loss at RM2,605.
CPO resistance level is at RM2,588 and RM2,600 (lowest price on January 6 and MA 50), while support level is at RM2,530 and RM2,506 (lowest price on January 8 and 12 November).
by Linda T.Silitonga, Hadijah Alaydrus