After seeing Tuesday’s RM124 / tonne “Downside Gap” which was confirmed by yesterday’s RM / tonne sell-off, we can comfortably say that the uptrend which started since the mid-term downtrend line was violated in October last year has come to an end.
On Tuesday, as CPO prices gapped down at the opening, the market violated a rather crucial horizontal support floor at the RM3,611 / tonne level. Not only that, the “Downside Gap” also confirmed last Friday’s violation of the uptrend line which had previously supported the CPO market’s rising trend for about 6 months. And the yesterday’s sell-off confirms this “Downside Gap”.
The near-term technical outlook of the CPO market has shifted from bullish to bearish. This is the first time that we are shifting our view towards the near-term market since October last year.
We have identified a few support levels which the market may be testing in the coming months. First support is seen at the RM3,336 / tonne level, followed by the RM3,103 / tonne level and the 3,000 / tonne psychological mark. To the upside, there is immediate resistance at the RM3,045-RM3,669 / tonne area, which is represented by the “Downside Gap” created on Tuesday. Next resistance is seen at the RM3,815-RM3,933 / tonne area.
On Tuesday, as CPO prices gapped down at the opening, the market violated a rather crucial horizontal support floor at the RM3,611 / tonne level. Not only that, the “Downside Gap” also confirmed last Friday’s violation of the uptrend line which had previously supported the CPO market’s rising trend for about 6 months. And the yesterday’s sell-off confirms this “Downside Gap”.
The near-term technical outlook of the CPO market has shifted from bullish to bearish. This is the first time that we are shifting our view towards the near-term market since October last year.
We have identified a few support levels which the market may be testing in the coming months. First support is seen at the RM3,336 / tonne level, followed by the RM3,103 / tonne level and the 3,000 / tonne psychological mark. To the upside, there is immediate resistance at the RM3,045-RM3,669 / tonne area, which is represented by the “Downside Gap” created on Tuesday. Next resistance is seen at the RM3,815-RM3,933 / tonne area.
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