Category Archives: Comment

As the price has broken below the crucial support at RM 2,619, and with a sharp decline in overnight soybean oil prices, a bout of stale bull liquidation, stop-loss and fresh selling is expected to commence trading. This is the first early signal suggesting the market has temporarily halted further upside potential. Whether the next pattern will translate into a prolonged downward correction is yet to be confirmed.

Suffice to mention that a downside technical target seen is at an area between RM 2,575 – RM 2,565. The previous support of RM 2,619 has now become the new resistance.

Market view: Selling forces to prevail in early trading. Very sharp drop in prices may attract quick entry/exit intraday buying interests.

FCPO Daily Commentary  FCPO041213

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Candlestick “spinning top” pattern indicates that the market is at a crossroad or locked in indecision with both sides evenly matched. It would be anyone’s guess as to who will win in this tug-of-war.
Overall, the technical indicators have not changed the upward potential trend continuation outlook. Currently however, trading is confined to a sideways trading band.
In such circumstances, it would be prudent to allow the market to provide the lead and follow the impending breakout through “the line of least resistance”. The crucial support is pegged at RM 2,619. A close below this point will be deemed as bearish and a close above the crucial resistance at RM 2,653 is deemed as bullish.
The gap at RM 2,755 would still be eyed to be filled by determined bulls.
Market view: Sideways, choppy trading with an upside bias seen.
attachment for the FCPO Daily Commentary   FCPO031213

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